The Fin Machine Company eyeing £44m turnover target

Mar 16 2010 by Peter McCusker, The Journal

A GROUND-BREAKING technology developed in the North East will help double turnover to £44m within four years at a privately-owned manufacturing company.

Seaham-based The Fin Machine Company, which is owned by its management with private equity backing, is in the process of rolling out its new mechanics for producing energy-efficient, domestic and light commercial air conditioning systems.

The company’s 20-strong research and development team has transformed the heat exchange technology it developed for manufacturing car radiators to this new market.

Since the launch of the product last year, three of its machines have been sold and are now with customers. A further two are awaiting shipment to China and orders have been placed for a further five, with each machine selling for around £1m.

Fin managing director Craig Billingham believes its innovation will revolutionise a multi-million pound global market place with energy efficiency now a priority.

And, after the successful opening of a Chinese assembly plant for Fin’s automotive products, the company says it has turned the corner after a tricky period.

We reported last year how Fin had been forced to make 60 redundancies after orders from its main customers, the radiator suppliers to the global car giants, plummeted.

Mr Billingham said: “What we have created here is a step change technology for both ourselves as a company and for the industry.

“The market for our new technology is huge and the reception has so far been fantastic.

“At the same time our new Chinese plant is performing well and struggling to keep up with demand. We had budgeted for £2m of sales from China this year but we will more than double that.”

The company achieved revenues of £20m in 2009 and it expects further steady growth this year. It expects the figure to reach £35m by the end of 2012 and £44m by the end of 2013.

It currently employs 250 staff – 10 more than at its low point last year – and says staff numbers will grow, but it is placing great emphasis on maintaining the efficiency improvements of its lean manufacturing drive.

Mr Billingham added: “Things have really started to pick up. The expansion into China has exceeded all our expectations and staff numbers over there have risen to 38.

“We are very proud of what we achieved here in Seaham.”

He believes the market place for its new product will become more crowded over the coming years, forcing prices down. But he expects it to maintain its market-leading position due to its technological strength.

Fin was established in the 1970s before being bought by its management in 1994.

It was based in Sedgefield before moving to the Seaham Grange Industrial Estate in 2004. Its customers include some of the world’s major car radiator firms such as Behr, Valeo, Modine, Delphi, VW and Showa.