Aga fires up with £4.5 million investment at Telford plant

Aga Rangemaster has cut the ribbon on a new £1.8 million sand plant at its Coalbrookdale base – part of an overall investment in the foundry worth around £4.5 million.

In total, £4 million has been spent installing the sand plant, including the construction of a whole new building on the side of its foundry.

A further £500,000 is also being spent on refurbishing the company's blast furnaces at the site.

Overall, the investment is aimed at raising the quality of the company's output in the hope of matching other investments it is making in marketing of its products in new areas such as China, and in the development of new designs of ovens.

Chief executive William McGrath said: "This is great news for the region, for Shropshire and the West Midlands as a whole.

"Our new sand plant has the capacity to produce the highest quality moulds that will continue to produce our world famous products. Our investment in the region is paramount and we support the jobs, local industry and the skills that Coalbrookdale and Ironbridge has offered for centuries."

The move comes as Aga continues its roll-out of products across the world.

The launch in China marked a step change in the plans for the company's future, with its move into the new market intended to bring about an "Evoque moment" – a step which sees the growing Chinese middle class take a shine to a high-end British product in the same way that people bought Jaguar Land Rover's Evoque cars.

It has been forced to heavily reconfigure its ovens to meet the demands of the new market, which has meant its development team in Telford coming up with a product which satisfies the demands of users in the Far East.

So far, the ovens are being stocked in around 30 shops in the new territory, with Mr McGrath anticipating strong growth as a result of targeting the Chinese market.

It has also unveiled the Aga City60, a new 60-centimetre oven which is aimed at people with smaller properties who want an oven that can be slotted into an existing space – such as those living around the City of London.

Aga Rangemaster's most recent full-year figures for the manufacturer, published in March, showed operating profits up 17.1 per cent to £9.6 million. Revenue increased by 4.3 per cent to £261.1 million over the same period, with its performance in the UK improving by 8.5 per cent at £171.5 million.

Mr McGrath said the move would mean the long-term outlook for the site is assured, and that Coalbrookdale remains central to the company's future plans.

"What this shows is that more than 300 years after we started investing here, we are still investing, and we now have one of the best foundries in the country," Mr McGrath said.

"This site will be central to the group for many years to come."

Aga employs around 120 people at Coalbrookdale, and more than 300 more at its factory in Ketley where it designs and builds many of its ovens.

Aga Rangemaster's most recent full-year figures, published in March, showed operating profits up 17.1 per cent to £9.6 million.

Cross-party politicians headed into the Ironbridge Gorge to celebrate the opening of the new site, with Telford's long-standing Labour MP David Wright joining his Conservative election rival Lucy Allan and fellow Tory, MEP Anthea McIntyre for the unveiling of the new facility.

The investment has been designed to compliment Aga's other recent moves, which have seen the company pushing out into new markets and launching new products to continue to build sales.

Aga chief executive William McGrath was also present at the factory for the unveiling, and said the move was a continuation of a long history of investment in the site.

"We have been investing in the site since 1707 when Abraham Darby first gained his patent from Queen Anne to smelt iron ore," Mr McGrath told staff at the factory. "Here we are, all these years later, and we are doing the same things.

"In recent years we have been delighted to have a whole new generation of products – we have seen the Aga Total Control, and the Aga City 60 – but we need to keep up with that with investment in the manufacturing side."

The sand plant will improve the overall quality of the company's metalwork, adding further provenance to its products as it continues to roll out new items into fresh markets.

Last month, Aga opened its first-ever shops in China, and it hopes to demonstrate quality to its customers in the world's second largest economy.

The sand plant sees recyclable sand delivered to a moulding machine in the foundry to produce the perfect casting for both cookware and for ovens.

Mr McGrath added: "It's all about the quality of the metalworking. Fundamentally, making castings requires a sand mould and the quality of the sand and consistency of how it's put together is important to product quality. The success here will also help up the road at Ketley, in terms of improving parts with these castings."

Ms McIntyre MEP added: "This investment in Shropshire by AGA Rangemaster Group proves that this important and historic British brand continues to produce world class products that can be exported to Europe and the rest of the world.

"I am delighted this company continues to invest in the region and thrive as an important employer."

Mr Wright, who was given the task of officially cutting the ribbon on the new sand plant before Ms Allan pressed the button that caused it to chug into action, said: "This represents the birthplace of the Industrial Revolution.

"It's amazing that we have this fantastic new investment in Telford, and fantastic that it's in a company that has been here for generations, providing products that are renowned around the world."