Mail order specialists invest £3m in packers
Jun 5 2008 by Chris Knox, The Journal
A MAILING company is set to quadruple its profits after investing £3m in new equipment as it looks to capitalise on the problems facing its biggest rival.
County Durham-based MetroMail believes the introduction of 14 new packaging machines will help to increase its turnover from £500,000 to £2m by 2010 as part of plans to become the most efficient mailing house in the UK.
The investment, which will involve increasing its 220-strong workforce, is part of a five-year plan which will also include a further £3m to improve the firm’s printing facilities as well as expanding its Peterlee factory.
The 20-year-old firm, which specialises in the mail order market, now believes it is in the ideal place to take advantage of the down-turn that has affected much of the sector as a result of the credit crunch. Tougher trading conditions saw the firm’s biggest rival Reed Print & Design announce last month that it was looking to close its site in Washington and relocate elsewhere in the region, putting the jobs of some of its 150 staff at risk.
Alan Purvis, MetroMail managing director, said: “This investment will allow us to hit our targets and make good on our five-year plan.
“With everything that is happening in the wider economy, we feel we are doing well and, with other firms not doing so well in the sector, we believe we can increase our market share.”
The new facilities will help to increase the firm’s output from the delivery of 210 million packages per year to 250 million as it aims to become the most productive and efficient business of its type in the UK.
“We are not expecting to grow our £10m turnover massively, but are more concerned with increasing our bottom line through more efficient printing and packaging methods,” Mr Purvis said. “With accurate real time information now available for all our state of the art equipment we are faster, more flexible and efficient than ever before.”
Late last month Reed announced plans to close its factory, which prints, designs and manufactures cartons and customises material for direct mailing, and relocate to alternative premises in the region.
A 90-day consultation with its staff Communication and Consultation Forum has started about both the proposed closure and relocation.
