Exports lead to hughest output, new jobs and boost for region

Mar 3 2010 By The Journal

CRABTREE of Gateshead is set to enjoy one of the busiest years in its history after securing £6.9m of new export orders from China.

As one of only three suppliers in the world that manufactures metal printing machines, exports account for the majority of Crabtree’s orders.

With countries across the Middle East and South America being established and mature markets, China is a new market that hosts great opportunity with a growing economy and need for quality.

Like many North East manufacturers Crabtree wins contracts over foreign lower-cost products with high quality products and services. The skills base, quality of suppliers and focus on high standards leads to a valuable competitive advantage when their customers work with the likes of Coca Cola, Gillette and Johnston and Johnston.

In this first quarter of 2010 Crabtree has increased its workforce by 40% and now employs close to 200 staff.

Managing director of Crabtree, Steve McDowell, said: "Our turnover is likely to increase from £13m to £20m in 2010. We normally run on a four-month order book, but for this year we have orders through to December, and 2011 is already shaping up to be healthy."

Alan Hall, regional director at EEF, the manufacturers’ organisation commented on the importance of companies such as Crabtree to the region. "Growth like this is great for Crabtree, its workforce and the region," he said. "The contracts will secure jobs in the locally based supply chain, Crabtree are sub-contracting work to other manufacturers in the region and may need to secure additional manufacturing facilities."

Mr McDowell, added: "Exporting is what we do day-in day-out. But when you start entering a new market it’s never guaranteed to work in the same way other markets do. Local knowledge and a presence in China have been crucial to securing the work and in fulfilling our objective of firmly establishing Crabtree in the Chinese market in 2010."

Crabtree of Gateshead was formed in 1986 and its roots can be traced back to an Iron Foundry in 1849 in Yorkshire. The company has evolved to be one of the world’s leading manufacturers of machinery for the metal decorating industry. Its decorating presses and coating machines are currently sold to 90 countries.