Innovative technology can insulate automotive supplier from industry woes

A Staffordshire factory holds the key to the long-term growth of a Midlands automotive supplier as it hopes its use of technology will insulate it from the problems affecting the global car industry.

Autins Group manufactures an ultra-fine fibre acoustic absorbing material called Neptune at its Tamworth factory, which opened in 2016 after a £4m investment. Products in Neptune’s range take up about 40% less space than its competitors’ products, which is a key factor for car makers.

The product is now creating a significant pipeline of opportunities after gaining technical approvals from its target list of European manufacturers, with nearly 90% of Autins’ current £44m pipeline relating to Neptune products.

It is already working with 12 manufacturers on 33 vehicle models – including some of the most prestigious European marques – and 2019 production is double that of a year ago.

The company expects to recruit staff next year but the short-term focus is on ramping up production at the under-utilised site.

Gareth Kaminski-Cook

Autins chief executive Gareth Kaminski-Cook said: “We have this big enquiry pipeline, which is about big projects coming live.

“The excitement is that turns into utilisation of the asset and we go through the break-even point.

“The size of pipeline we have got will transform the levels of employment in our operations. At the moment we don’t need to increase – it secures the workforce – then next year we will look to expand.”

Autins, which is listed on the stock market, has been affected by the problems affecting the automotive sector across Europe and that the Midlands has felt keenly with the job cuts and slowdown in production at Jaguar Land Rover.

Autins’ own analysis showed that revenue from an unnamed key customer was down £1.8m in a six-month period. That single customer was responsible for 80% of the drop in revenue for the whole business.

Kaminski-Cook, who took over as chief executive in October, has sought to strengthen the business so that it can still be profitable in periods of volatility.

He said: “Whilst we love growth, the most important thing for our business is to build flexibility in.

“We are in a nice situation – we are going to gain market share but the market volatility is having a bigger impact on us than the share of business we are gaining.

“Whatever the level of demand we still need to make profit. We couldn’t do that last year but I believe we can now.”