Engineering firm sets sights on £15m turnover target after major investment

Laser cutting and metal fabrication business Leeds Welding Company (LWC) is targeting turnover of £15m by 2020 after investment more than £1.5m in its Hunslet factory.

The investment in new machinery and in upskilling the company’s 110-strong workforce has enabled the company to post year-end turnover of £11m.

Backed by a £100,000 investment from Leeds City Region Enterprise Partnership (LEP) and Leeds City Council, the overall investment has created 10 jobs, in addition to five apprentices taken on last September.

The company is also working closely on projects with UTC Leeds, the city’s manufacturing and engineering school for 14-18 year olds, and has sponsored its ‘Student of the Year’ award.

“We’ve invested in people and systems as well as plant and machinery,” says managing director Richard Eaglen. “It’s not just a case of bringing in bigger and more efficient machines. The investment is part of a wider plan to overhaul the operation here and make a step change to become a different kind of business.”

A full-scale reorganisation of the 33,000 sq ft manufacturing plant at Westland Square is currently underway, guided by new production director Ian Verity. A former Sulzer Pumps employee, he has experience of setting up manufacturing operations around the world.

“We’ve made a big investment in upskilling the workforce to make sure they are qualified to recognised standards. We’ve brought in a product development engineer and put our engineering design and accounts teams through industry training programmes,” says Eaglen, adding that it’s important to help develop and bring through the next generation of engineers as well.

Cllr Judith Blake, leader of Leeds City Council and chair of the LEP investment panel, said: “Manufacturing is a key sector of the Leeds economy, with some 1,800 firms and a combined workforce of around 26,000, making Leeds one of the largest manufacturing centres in the UK. The sector offers fantastic career opportunities for young people and it’s great to see LWC investing in its workforce, in apprenticeships and in building a strong relationship with the team at UTC Leeds to bring the next generation into the industry.”

In addition to supporting the next generation of skilled manufacturing workers, the support from the LEP and the council will also pave the way for the company to break into new markets, improving its productivity and profitability.

Eaglen says: “The core business is in sub-contract manufacture for commercial vehicles, mechanical handling and construction sectors,” As well as opportunities to do more business in existing markets, he also sees untapped potential in oil, gas and rail industries.

“You need capacity – hence the investment in increasing our production capability – but you also need the credentials to become part of the supply chain to these industries. Ultimately the aim is to become a £10-£50 million turnover business, rather than a £2-£10 m business, and to do that we need to operate in a very different way.”

In addition to the core business, LWC manufactures innovative niche products, including passenger guidance systems for airlines. It recently developed a range of new products aimed at the agricultural sector – bail spikes, handler buckets and hydraulic brushes used for cleaning roads –which were launched last month at the Yorkshire Agricultural Machinery Show.

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