Award firm lands £8m contract to secure jobs
Sep 3 2008 by Peter McCusker, The Journal
THE reigning Journal North East Company of the Year has landed an £8m contract – securing the jobs of hundreds of workers until 2016.
The Aircraft Carrier Alliance has chosen Darchem Engineering to supply air intake and exhaust systems for the UK’s future aircraft carriers (CVF) – HMS Queen Elizabeth and HMS Prince of Wales – which are expected to enter service in 2014 and 2016.
The news comes hot on the heels of the company’s £4m per year contract with Rolls Royce, secured earlier this summer. Darchem said its ability to compete in a variety of sectors was boosting revenues in challenging trading conditions.
Marketing manager Allison Harmison said: “We operate in the aviation, oil and gas, naval and automotive markets. This diversity has stood us in good stead in the current climate.
“A lot of our contracts are long-term so we are securing work well into the future.” She said Darchem would continue to pursue opportunities in these sectors and capitalise on the global drive for renewable energy sources. “We are hoping to win further work on infrastructure projects and new-build nuclear stations,” she added. As part of its latest contract, Darchem will supply air to and remove exhaust gases from the ships’ main gas turbine engines and other main and auxiliary diesel engines.
Darchem, which employs 630 people at its headquarters in Stillington, Stockton, and 120 at its sister plant in Gloucester was recently named Company of the Year at the 2008 North East Business Awards run by The Journal and Teesside’s Evening Gazette.
The contract win adds further momentum to Darchem’s plans to boost turnover from £60m to £100m by 2013. Robin Davison, a director of Tees Valley Engineering Partnership, said: “It’s great news.
“It shows you that Tees Valley companies can win prestigious work based on the capability of the local workforce.”
The contract for the two new carriers has already provided work elsewhere in the region. BAE Barrow, which has won a substantial part of the £3.9bn contract has selected the Tyne Carrier Association (TCA) to supply over 40 hull units worth around £200m.
The TCA say their proportion of the work will guarantee employment for around 400 staff on the Tyne.
Click on the links below for more stories on Darchem Engineering:
April 2008: Darchem set to create 40 jobs
May 2008: Darchem Engineering wins top company title
May 2008: Life in the fast lane for award-winning MD
June 2008: Darchem set to soar after winning Rolls Royce contract
