Well targeted investment boosts region's economy

Jun 12 2007 By James Barton, The Journal

The North-East's economy has been given a boost as well-placed investment has borne fruit in two key areas - engineering and marine design. James Barton investigates.

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A rejuvenated Northumberland engineering company is celebrating landing a £500,000 contract with commercial vehicle giant Scania after receiving support from the North-East Productivity Alliance (NEPA).

NEPA, which is funded by regional development agency One NorthEast, has worked closely with Cramlington Precision Forge to help raise the company's productivity after it was on the brink of closure before being bought three years ago.

The new Indian owners, Sundram Fasteners - part of the TVS group - reversed plans to relocate production from their North Nelson Industrial Estate factory to Hungary and instead focused on increasing productivity.

Cramlington Precision Forge will now manufacture complex gear and clutch parts for the Swedish company's range of trucks.

It's the second major contract success in a year for the firm after winning £1m-worth of new business to supply clutches to the MAN Group, one of Europe's largest manufacturers of commercial vehicles.

After an initial introduction from NEPA, engineering fellow Keith Copeland, NEPA engineer Neil West and consultant Alex Macphie carried out an analysis of working practices at the company with both management and shopfloor workers and introduced the latest lean manufacturing techniques.

Managing director Steve Rose has his sights firmly fixed on winning more business with the firm now fully exploiting its niche market position of making highly specialised component parts for differentials, clutches and professional power tools. Mr Rose said: "Since late 2003, our sales have grown to £4.5m and we have diversified our product range into professional power tools.

"This deal means strengthening job security and we will look at increasing our 55-strong workforce accordingly."

One NorthEast has supported the growth of Cramlington Precision Forge in the past through the offer of a total of £379,000 in Regional Selective Assistance and Selective Finance for Investment grants.