Winner of award ready to expand
May 20 2009 By The Journal
AN award-winning engineering firm unveiled ambitious expansion plans as it opened new premises in Stockton.
International Procurement Ltd (IPL) said it was looking to become a £5m-a-year business by 2012 after securing a distribution agreement with one of the UK’s largest manufacturers of pneumatic automation products.
Under the agreement, IPL will distribute in the North East equipment made by SMC Corporation. The deal will generate more than £500,000 in the first year for IPL, with the promise of further work to come.
The company aims to boost revenues and profitability by manufacturing components which previously were outsourced from other areas of the UK. Currently it can squeeze 8% to 9% net profit on annual revenues of £1.2m,but bringing manufacturing in house would take costs off the bottom line, said md Colin Wilson.
He said IPL’s move to an 8,300sq ft site on Portrack Industrial Estate would allow the firm to carry more stock and a wider range of products.
The offices were officially opened last week by Stockton Borough Council leader Coun Ken Lupton.
IPL supplies custom-built valves and pumps for some of the world’s biggest blue-chips, including BP, Total, ConocoPhillips, British Energy and Drax. The company won the Tees Valley Small Business Award in this year’s nebusiness awards, which are organised by The Journal and Evening Gazette.
