Darchem sets sights on revenue of £100m
Jun 3 2008 by Andrew Mernin, The Journal
ENGINEERING firm Darchem has revealed plans to drive its annual revenue beyond the £100m-mark within five years after landing a lucrative contract with Rolls Royce.
The firm, based at Stillington near Durham Tees Valley Airport, has won a £4m-a-year deal with the aerospace giant to supply parts for its BR 725 engines.
The £60m-a-year business, which was named company of the year at this year’s North East Business Awards, said the rolling contract would be worth between £15m and £20m to the firm.
The new engine is scheduled to power the first flight of the Gulfstream G650 aircraft in the second half of 2009 and will enter service in early 2012.
Darchem managing director Jon Gagg said: “We have an excellent quality record and one of the best supply records for delivering on time. We are a hi-tech, specialist engineering business and will look to grow organically by spinning our core products into other applications.”
Meanwhile, Mr Gagg also hinted at future acquisitions and said a number of companies were “on the radar” of Darchem.
He said: “Should they become available, we would certainly consider buying them.”
In the last year, Darchem has won contracts worth £100m, supplying blue chip companies including Airbus, Boeing, Bombardier, BAE Systems, Rolls Royce and the Ministry of Defence.
Last month it announced it was investing £2.5m at its Stillington plant to extend its insulation systems facility, thermal protection business unit and aerostructures operations.
Darchem’s aerospace products account for around two thirds of its overall business and are attracting interest from Asia and the Far East.
But the company said it was not looking to establish new manufacturing sites overseas and that its Teesside base would be the focus of its expansion plans. Owned by US parent firm Esterline Corporation, Darchem employs around 600 people at its Stillington headquarters and a further 120 at its Gloucester facility in the South West.
The company manufactures high temperature complex fabrications and lightweight insulation systems for the aerospace and nuclear markets.
