Energy consumption slashed to save cash

Nov 17 2009 by Iain Laing, The Journal

A MANUFACTURER which has just laid off more than half its staff has found a new way to save over £200,000 a year.

Aluminium diecast company Norfran, of North Tyneside, called in experts from Government support group MAS North East to help it cut costs after a year which saw it plunge into administration after turnover fell 75% and it shed 86 of its 150-strong workforce.

The company was bought out by RM Easdale in July and started to recruit again and welcomed MAS North East’s help in saving money.

The support group began work at the firm in June and helped to cut Norfran’s £565,000 annual energy bill.

Mark Smith, sales and technical manager at Norfran, said: “The global economic downturn hit the company hard, as it has manufacturers across the world. But with the dedication of our loyal employees, the speed of the assistance of MAS North East and the support of Square One we have re-established ourselves in the industrial sector.

“By reducing energy bills and consumption we have saved thousands, which has let us focus on re-building the business and ensure we are operating to maximum capacity.”

An extended energy review was carried out and MAS North East brought in a specialist delivery partner Square One Utilities to help address energy supply problems, renegotiate energy bills and avoid punitive “out of contract” charges that Norfran faced.

To further support Norfran Ltd, senior managers involved in the energy procurement process have received training in managing utility contracts.

MAS North East energy specialist Steve Fountain said: “The change of ownership helped the company realise it had to address issues relating to its energy bills and that is where MAS North East and Square One came in.

“The encouraging results will strengthen the firm’s successful track record as a manufacturer.”