A NORTH Shields engineering company is bringing jobs and investment back to the North East after it decided to stop manufacturing in the Netherlands.
Diesel Marine International (DMI) opened its factory in mainland Europe about 15 years ago, but believes it can now cut costs by nearly half by bringing the work home.
But even with unemployment at 11.3% in the region, the highest in the UK, the company can’t find enough workers to operate the machines.
DMI chairman Peter Jackson said: “We plan to invest in equipping and upgrading our factory in North Shields to take engineering work currently carried out by our subsidiary in the Netherlands.
“The reorganisation will not only safeguard jobs of our existing employees who are highly skilled, but means we will be recruiting additional staff in the near future.”
The reorganisation means that manufacturing will cease with immediate effect at the company’s site at Zwolle.
Jackson said the weaker pound now meant it is 40% more cost-effective to carry out the work in the UK.
He added: “In today’s highly- competitive market we have no choice but to switch production to the UK and ensure that this part of the business remains on a sound commercial footing.”
Between eight and 10 extra engineers will be needed for the work.
But so far the company has had difficultly finding people who are qualified to renovate large valves and pistons which come off ocean-going ships.
Commercial director Kevin Woodmansey said: “We have been to the job centres but so far very little. We found one chap but he lived in Sunderland which was too far away.
“We will have grinding machines standing idle if we can’t find the right people. We are looking for turners grinders and people who can do plating.”
The dilemma highlighted by the engineering company is widespread in the North East where a quarter of manufacturing companies report skill shortages.
Only last week Prince Andrew was in the region to discuss the problem with key industry figures at manufacturing sector group EEF.
After the meeting the Prince called for more apprentices to fill the void. and then promised to back North East industry.
Diesel Marine International has been operating at its existing North Shields site since 1962.
DMI UK is one of the largest electroplating plants in the country with a client base which includes BAe, Nissan and Honda.
The DMI group, which owns other firms including an electroplaters in Aberdeen and a diesel reconditioning firm in Hamburg, has built up a global network of workshops covering most of Europe, America and the Far East .
