AEI Compounds invests in new facilities and production capacity
Oct 5, 2009
AEI Compounds Ltd, a subsidiary of TT electronics plc, is to move its operations from its current base in Gravesend to Sandwich, Kent. The company manufactures and sells plastic compounds, used in the manufacture of electric cables and hot and cold water pipes. AEI Compounds serves a global customer base.
The relocation was made possible by a Grant for Business Investment, which is funded by the South East England Development Agency. The funding was delivered by Finance South East following free advice from Brian Short, grant advisor at Locate in Kent. AEI will also be installing a new production line for its range of environmentally friendly and low toxicity cable compounds. The new line will have the capability of producing in excess of three times the current output rate. It will allow the business to grow its market share, particularly in the Middle and Far East, where infrastructure and construction projects are demanding such high specification technical products.Mark Shaw, Managing Director, said: "This investment in our business is essential if it is to remain a leading player in the global wire and cable market, where competition from low cost manufacturing economies continues to increase.
"Despite the current challenging market conditions the business has continued to thrive with a strong performance in the last financial year, backed by revenue growth of 27% and volume growth of 21%. Much of the success has been attributable to a culture of developing innovative new products, matched to customer demand and backed up with extensive technical support. This customer focussed strategy will remain the key driver for AEI Compounds as it moves into its next phase of development."
The new facility in Sandwich will allow the business to develop all of its current activities, including the PEXb markets for pipes and fittings used in central heating and hot and cold water supply and will house the company's comprehensive R&D and technical centre.
The company currently employs 57 personnel and is confident that a majority of the employees will transfer to the new location. Recruitment for new staff in the local area is also now underway. The new production line will commence volume production in October with existing machinery being moved between now and the end of January 2010.
Paul Wookey, Chief Executive of Locate in Kent, said: "It's great news that AEI Compounds is reinvesting in Kent, especially at a time when the manufacturing sector is suffering across the country. The fact that such a well-respected company has decided to recommit to the county is testament to the county's business benefits."
For further information please contact Zoe Biddick at Biddicks on 020 7448 1000 or Shatish Dasani, TTe Group Finance Director, on 01932 841310.
For trade enquiries please contact Mark Shaw, Managing Director on 01474 566736. http://www.aeicompounds.co.uk/
Source: Locate in Kent
