Digging deep to keep firms on top of their game

Sep 24 2007 by Helen Logan, The Journal

Tens of millions of pounds are being invested by two very different North-East companies as Helen Logan and Mike Morgan discovered.

DURING the last 12 months an engineering firm has made several key announcements about its future growth. Burdon Engineering is in the middle of a big spending spree and, as well as investing £20m in new premises, is splashing the cash on vital machinery.

On the back of its ambitious plans, it is to take on 160 additional staff.

This means its workforce is to nearly triple during the coming few years.

And recently the Stokesley outfit added a touch of glamour to the usually staid world of machining, milling and turning – by signing a deal with one of the coolest brands on the planet.

It has been contracted by the Alumasc Group to produce major components for one of the world’s most sought-after cars – the Aston Martin. Burdon Engineering, whose blue-chip client list also includes Caterpillar, Rolls-Royce and the Hong Kong Mass Transit Railway, already employs 75 people.

The company is to build a state-of-the-art headquarters on land close to its current base at Stokesley Industrial Park.

Work is expected to start next year. Eventually, there will be an extra 85,000 sq ft of buildings for manufacturing, office, warehousing and assembly use.

Bulging order books and its expansion plans have prompted the need for the company, part of Fine and Performance Chemicals group, to launch its major recruitment drive during the next five years.

Other investment has included a hi-tech, super-accurate measuring machine which, at the time, took the amount spent on new kit this year to £3m.

The 30-year-old firm says the “super-size” CMM (co-ordinate measuring machine) is the only one of its size and configuration in this area.

It has the capability for laser inspection and “reverse engineering” which allows an existing part to be scanned and a 3-D digital model created. And that means a significant reduction in measuring and analysing time.

The machine – which weighs in at 25 tonnes – is accurate to within four thousandths of a millimetre and is operated in a climate controlled “clean” environment.

Now the company has unveiled another swathe of investment and is ploughing £1.6m into buying two computer numerically controlled five axis machines.

These allow large complex components to be produced more accurately and at greater speed. This latest new equipment is necessary because Burdon is in the process of securing a long-term agreement to supply a major aerospace company with components. This will lead to 10 more jobs.

All this investment is having a vital knock-on economic effect for the local community. For the company reckons the surrounding area benefits from its salaries and investment in materials and services to the tune of up to £10m.

Managing director Barry Hindson said: “By investing in the very latest technology, Burdon can meet the exacting demands for precision engineering from sectors such as aerospace, medical and defence.

“Alongside our day-to-day contracts for huge names such as Caterpillar these investments put us in an excellent position. It is good news for us and for the local economy.”

Burdon relocated to Stokesley in 2000 after 25 years in Great Ayton.

CLEVELAND Potash Boulby Mine is getting a cash injection of about £22m. This means the future of the mine near Loftus in East Cleveland is assured for the next 20 years at least.

And the mine’s general manager, Graham Clarke, said many more millions of pounds of investment are set to be poured in if additional future plans come to fruition.

All this is a shot in the arm for the mine’s 1,000 workers, the surrounding Teesside area and 4,000 jobs at local ancillary support industries.

Currently, Cleveland Potash is putting £20m into the project to identify and exploit further potash reserves deep beneath East Cleveland and under the North Sea.

Regional development agency One NorthEast is providing a grant of nearly £2m to help develop the south-east area of Boulby Mine.

Mr Clarke said: “We are currently investigating expanding in the south of the mine, but are also looking at other areas for future expansion.

“We in turn are looking at other areas of the mine for future projects and this investment will be substantial - many millions of pounds, as mining is an expensive business. But this £22m investment is the best start we could have hoped for.”

He said export markets will focus mainly on Western Europe in future, backed by a strong UK market.

A woman who has done much of the spade work to enable this crucial grant aid to take place is Sarah Metcalfe.

Her decision to set up her own business consultancy less than a year ago is already paying dividends – including playing a key role in gaining almost £2m of investment for the Cleveland Potash Boulby mine.

In addition Sarah, founder of SJA Business Consultancy, has carried out work on a wide range of other projects such as the Digital City in Middlesbrough and the Enterprise Academy scheme led by Middlesbrough Football Club.

Sarah, 29, who runs the business from Ellerby, near Staithes, was previously a senior consultant for professional services firm Deloitte in Newcastle and has also held posts in the business support, analysis and research fields with a range of organisations including Caxton Consulting, Kier Sheffield, Marconi Communications, UK Steel Enterprise at Kirkleatham Business Park and the Sedgefield Borough Business Service.

She said: “As a local resident, I was especially pleased to be asked to assist Cleveland Potash in securing the £1.95m Selective Finance for Investment in England (SFI) from One NorthEast to help develop the mine and secure its future which is, of course, vital to the economy of the whole of East Cleveland and North Yorkshire.”

Sarah’s role also gains high praise from CPL general manager Mr Clarke, who stresses the need for the expertise required to successfully meet the stringent requirements in applying for SFI funding.

He said: “Consultants can often provide solutions for a business in relation to many varied issues, but rarely does a consultant become such an effective team member as Sarah did during her recent work with the company.”

Workers at the mile-deep mine near Loftus – Europe’s deepest – have always had to carry out their tough and demanding jobs in temperatures of 100 degrees Fahrenheit and above.

The funding will enable Cleveland Potash to develop far-reaching exploration and expansion plans with its parent company ICL (Israel Chemicals Ltd).

Both management at Cleveland Potash and the miners at the sharp end of the pit have said the vital millions of pounds of investment has given everyone great hope for the future.

It has been a galvanising boost quite like no other at the mine, they say.

Miners, many of whom have worked down Boulby Mine for 30 years or more say the economic effect on families, jobs, mortgages and lifestyles is “incalculable.”

Now many Teesside young men will be following their fathers, brothers and uncles down the mine to earn an excellent standard of living.

Face worker Peter Caley, 51, of Carlin How, has worked at Boulby mine for 31 years.

“There’s real progress now.” he said. “In the past this mine has had its ups and downs with competition from abroad.”

Face man and former oil rig worker Steven Duncalfe, 25, of Whitby, said: “This means I should be employed here for many years.”

Geoff Evans, 54, of Skelton Green, another face worker with 31 years’ experience, said: “This is great news for the area and for young miners of the future.”

Lamp room engineer Dean High, 23, of Middlesbrough, said: “This will give me 20 years of future and mortgage and job security.”

Winder banksman Fred Taylor, 51, of Skelton, who is responsible for the movement of men and materials down the shaft, said: “This is one of the best bits of news at the mine for years.”

Overseer of one of the main faces Adam Cartwright, 37, of North Skelton, a married man with two children, said: “This is fantastic for my children’s future.”

Mine manager Phil Baines, 45, of Sherburn in Elmet, near York, said: “I’ve previously worked in coal mines for 25 years and this means marvellous job security.”

One NorthEast has worked closely with Cleveland Potash and Tees Valley Regeneration for months.