Nuclear boost for Darchem

Apr 15 2009 by Jez Davison, Evening Gazette

DARCHEM Engineering said it was on track to boost turnover by more than 60% over the next four years after announcing a £4m expansion of its Stillington facilities.

The cash injection is in anticipation of major contract wins in the nuclear sector and will allow the firm to extend its thermal protection and aerostructures operations.

The new facilities will increase factory space by 3,500 sq metres and the external site by 3.8 acres - allowing for further expansion as work comes on stream.

The investment is likely to create jobs, although exact numbers will depend on the volume of new orders.

Darchem, which employs 600 at its Stillington base, and another 100 elsewhere in the UK, said the nuclear market would be a key source of future revenue as it looked to increase last year’s turnover of £60m to £100m by 2013.

A spokesperson said: “At the moment that is what we’re aiming for. There’s still uncertainty with the recession but we have not changed these targets.”

The nuclear industry is already a core customer for the firm. The company provides insulation and specialist fabrications for more than 140 power stations worldwide, including projects in Europe, China, Korea and North America.

It is among those keen to get in the running for building the UK’s new generation of nuclear power stations, for which sites were officially published today. Around 20% of the UK’s electricity is generated by ageing reactors that need to be replaced over next 10-15 years. It is anticipated that work will begin on the first of the new sites by 2012.

Darchem, a previous winner of the North East Business Awards, also works in the aerospace and defence sectors and last year won an £8m contract to supply parts for the biggest aircraft carriers to be built in Britain.

The 65,000 tonne carriers - HMS Queen Elizabeth and HMS Prince of Wales - were expected to enter service in 2014 and 2016 but are now likely to be delayed by up to two years following a cash-saving review of Ministry of Defence equipment spending.

Darchem said it had not been affected by the delay.