Expansion plan by loyal Consett firm
Feb 18 2008 by Peter McCusker, The Journal
ONE of the first businesses attracted to Consett after the closure of its steelworks in 1982 is expanding.
Electrical distribution company Electrak, based on the town’s No 1 Industrial Estate, has seen its turnover rise by 65% to £15m in just two years.
Now it is looking at a multi-million pound expansion onto adjoining land.
The construction boom in the South East fuelled by the rapid growth of the financial services sector has help the company’s expansion.
Finance director Tony Holden said: “We added around an extra 10,000sqft to the original 25,000sqft to cope with demand and we are currently involved in talks to expand the factory further to cope with our continued growth. We employ 165 people full time and this has grown in relation to turnover as the company has grown.”
Mr Holden said the use of agency staff helps the business cope with peaks and troughs in demand and that future staffing requirements will be addressed as the company moves forward.
Mr Holden added that new products have helped their success. He said: “We have upgraded our core product range and developed new ranges to broaden our appeal in the market place.
“Our growth has partly been fuelled by the booming financial services sector in the South East.
“Financial institutions, banks, lawyers and accountants’ offices are all key markets.”
Many office-bound PC users will find their electrical distribution system, floor boxes and desk modules manufactured by the County Durham company.
The basic product is made elsewhere in the North East and the UK and assembled at the Consett unit.
Electrak is owned by its directors including managing director Geoff McCann, one of the company founders.
After appointing export manger Andy Pearson 18 months ago the company has seen exports grow from zero to £2m.
Mr Holden said: “We did not have any presence overseas so we recruited an export manger and have now established a network of agents overseas. Andy spends about 50% of his time abroad and this is proving to be highly successful.
“Key areas of success are Singapore and Hong Kong where the same regulations apply as the UK and we are now looking at the Middle East.”
This overseas success has been supported by the UK Trade & Investment's (UKTI) Passport to Export programme.
Electrak recently secured a £400,000 order with a major bank in India after its support.
Geoff Young, a UKTI international trade adviser, said the company is well placed.
He said: “Electrak already had experience in international trade but recognised how the additional support available through Passport could help the company tap into new markets.”
