Recycling unit is way forward for company
Mar 6 2009 by Peter McCusker, The Journal
A PROGRESSIVE Sunderland company has built a new £5m recycling centre as it expands into new markets and plans to create more jobs in the process.
Despite the difficult economic times Alex Smiles, of Sunderland, successfully raised the cash to construct the facility which will allow it to break into the lucrative household waste market.
The family-owned firm has recruited 12 new staff in recent weeks taking total workforce to 100 and envisages taking on more workers as it looks to add an extra shift to cope with demand.
Director Stuart Smiles said: “The new facility is the best in the region and will give us a competitive advantage as we move forward.
“This will allow us to break into the household waste market and we are currently bidding for work from Sunderland, Gateshead and Newcastle councils.
“Government policies are driving companies and authorities to recycling and this is providing us with an excellent opportunity to increase our volumes this year and in coming years.”
He went on to say the company is optimistic that, as it increases its penetration into the household waste market and construction activity picks up, it will add an extra shift and expects to increase its workforce to around 150 in the coming years.
He added: “Although things have been quiet, as a lot of building activity has stopped, we are building for the future. We have noticed an increase in activity in recent weeks.”
Alex Smiles Ltd was created in 1973 by husband and wife team Alex and Jane Smiles. Alex is still involved with the business although the day-to-day running of the firm is now in the hands of his son, Stuart.
Stuart’s brother, John, is a fellow director and their uncle, John senior, also works in the business.
Lloyds Banking Group provided a £2m loan to help develop the new facility with the rest coming from reserves and invoice financing.
Earlier this week Lloyds revealed it had increased lending to North East SMEs by 28% in 2008 and Leigh Taylor its area director for commercial lending said: “This is further example of how Lloyds is extending its lending to the region’s SMEs despite the recession.”
Mr Smiles said: “Lloyds were supportive and helpful and we were able to get what we wanted from the bank to help take the business forward.”
Smiles turned over £7.5m last year and expects this year’s figure to be in the same region, but once the economy begins to recover it expects to add £1m a year to sales.
It moved to a new 10-acre site close to the city’s Queen Alexandra Bridge in 2002.
The new facility is the best in the region and will give us a competitive advantage
