Tricorn announces plans for £1m Chinese facility

WORCESTERSHIRE engineering group Tricorn is to target the emerging markets more directly by opening a manufacturing facility in China.

The AIM-listed tube manipulation company said its intention was to establish a plant in China as a key part of its strategic development in South East Asia.  The move is underpinned by strengthening customer demand for a locally-based supply chain.

Tricorn said it anticipated the new facility would be operational by the end of 2012 and earnings enhancing in 2014. Initial investment is expected to be approximately £1m.
 
The facility will be focused on supplying Tricorn’s major customers in the region as well as developing business on a broader basis.

Mike Welburn, chief executive of Tricorn, said: “I am delighted to be announcing this important development. The group has had a purchasing office in China for the last eight years and as a result a well developed network of sub-contractors and suppliers.
 
“By establishing a manufacturing facility in China, Tricorn will play a leading role in helping its major customers localise their supply and reduce costs in their supply chain. The group has a signed letter of intent with one of its largest customers and is well advanced with its plans for the establishment of the facility.”

“China is a key market and this action will ensure that we are well positioned to maximise our opportunity for revenue growth,” he added.

Malvern-based Tricorn supplies pipe and tubing assemblies to niche markets worldwide in the Energy & Utilities, Transportation and Aerospace sectors.  

The group employs around 300 employees and operates through four brands: MTC; Redman Fittings; Maxpower and RMDG Aerospace.