£500,000 investment by Telford steel products firm
A Telford steel products maker is set to invest almost £500,000 in cutting-edge new machinery and an overhaul of its premises as it bids to gain a foothold in emerging markets worth £6 million a year.
The bulk of Fabweld Steel Products' major investment at its Madeley plant will go towards a £385,000 Fiber laser cutting machine for a new range of product lines designed by the company.
The investment will also create two new apprenticeships, with another nine or more jobs to come over the next two or three years.
Meanwhile, the company will also invest around £100,000 at its Telford site to enhance the working environment, create extra workshop space and accommodate the laser machine.
Managing director Richard Hilton said the investment demonstrated the company's commitment to innovation, and to existing large-scale infrastructure projects.
"Without a doubt, this new machinery will make us even more efficient. It will allow us to produce the volumes required to maintain our excellent customer service levels as well as help penetrate the new market sectors," he said.
"The machine is also the latest fiber technology saving 60 per cent on power consumption and 50 per cent on consumables, which demonstrates our commitment to reducing our carbon footprint.
"The new cutter will provide sufficient capacity to double the current turnover levels as we capitalise on projects in the power and energy sectors."
The company has won a grant of £80,000 towards the capital cost of the new equipment from the Green Bridge Supply Chain Programme, a scheme backed by the Marches LEP and funded via the Government's Regional Growth Fund.
And the investment drive is set to continue into the new year, with plans afoot to inject a further five-figure sum into the business.
"Three years of hard work by our design team has culminated in this exciting opportunity to enter new markets and these developments are a testament to that team," Mr Hilton added.
"The achievement has given me confidence to invest in further research and development, with another £50,000 earmarked for 2014.
"We are already working on a National Grid project which will also directly benefit from the investment, and offers further opportunities for other major infrastructure projects in the pipeline."
The Green Bridge programme is aimed at SMEs in the Marches wanting to develop, grow and diversify their businesses with grants available for projects which can demonstrate economic benefits in terms of investment and job creation.
Grant support from £20,000 is available to companies to develop new markets, new products, new processes, skills development and purchase of capital equipment.
Earlier this year Fabweld celebrated quarter of a century in business by landing a key role in the redevelopment of Birmingham New Street, supplying steel edged block pavers for the city centre interchange.
