Fittings company ALM Products is forging ahead in new markets

Mar 15 2010 by Chris Knox, The Journal

A BUSINESS that makes fittings for furniture plans to add £2m to its turnover and create jobs after entering a number of new markets and investing £500,000 in its production line.

County Durham-based ALM Products is investing the cash in a second Mazak 5-axis lathe, which will allow it to speed up production and cut costs.

The company, based in Newton Aycliffe, is also investing in a robotic engineering system, which will allow it to keep its production line running over night without the need for staff.

The firm, which makes locks and hinges among its range, said it has been forced to axe 10 staff last year as a result of the downturn in commercial property, but said it was now looking to add 15 new jobs to its 25-strong workforce over the next 18 months as it moves into new markets.

However, it did say that a move towards an automated production line meant it would need fewer machine operators and more skilled professionals such as technical engineers. The firm, which was founded in 1995, has already began to expand into new areas by supplying fittings to Washington-based electric van manufacturer Tanfield Group, and said it was now looking to move into the offshore oil and gas sector and windfarms.

It is now looking to get its growth back on track after seeing its sales drop by £500,000 to £3m last year, and hopes to get to £5m by 2014.

Founder and managing director Tony Thompson, said: “The manufacturing industry in the North East has been hit hard by a debilitating recession.

“However 2010 is seeing positive activity which has enabled us to seize the initiative through investment and diversifying into new manufacturing opportunities.

“The offshore oil and gas, energy and automotive industries are at the heart of the new North East economy and we are determined to explore these markets.”

The firm is now looking to completely replace its focus on the commercial property sector, which accounts for around for 30% of its business, with contracts in the renewable energy sector and said that it was currently in talks over a number of deals.

Mr Thompson said: “In 2008 we had to make some tough decisions, which including losing some of our staff. However, I believe the efficiencies and investments in technology we have made will allow us to grow the business once again and add jobs.

“We will still work within the commercial property sector as it begins to recover, but with more of an involvement in other markets.”