Engineering firms set to invest £65m in new factory development
A £65m factory manufacturing industrial compressors is being built in Warwickshire following a collaboration between two engineering companies.
Lontra and partner Shield Engineering have committed to building the high-tech manufacturing facility, which will create 75 jobs by 2020.
The first part of the factory will open later this year, with a single flexible production line complementing Lontra’s existing R&D Technology Centre in Napton.
The Lontra and Shield workforce for the project is expected to double to 50 this year, with 25 new engineering and production line jobs.
The project is backed by Shield Group, one of the largest UK manufacturers with contracts to supply components to Caterpillar, Cummins, Aston Martin, Jaguar Land Rover and JCB.
The £65m investment will be spread over the next three years, with £15m being spent on the initial development and the remaining £50m invested in a further site.
Funding for the second phase of expansion is now being sought.
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Steve Lindsey, CEO and founder at Lontra, said: “This is a vote of confidence in Britain’s ability to manufacture at volume and high specification at globally competitive prices. We’ve long led the world in innovative ideas, the spread of technology across prototyping and manufacturing means than Britain is perfectly placed to lead the fourth industrial revolution.
“This is a new chapter for our business and we are delighted to be spearheading a new wave of precision manufacturing in the UK. We are also committed to the Midlands where we believe that some of the world’s very best engineering minds can be found.”
This is the first time that Lontra’s products will be manufactured directly in the UK, and the company said the move represented a show of confidence in the country’s manufacturing capabilities.
Lontra currently licenses its Blade Compressor design to global pump manufacturer Sulzer. The manufacture of compressors in Southern Ireland will continue under Sulzer’s license, with Lontra’s new facility tackling fresh markets and applications.
Business Secretary Greg Clark said the investment was a demonstration of the confidence felt by the company in the UK economy.
“Britain has a proud history of manufacturing and through our Industrial Strategy the government has outlined a vision that will build on our strengths in this industry and help shape an environment that enables businesses and manufacturers to thrive,” he said.
“Significant investments by companies, like Lontra, into the UK’s advanced manufacturing base demonstrate the confidence businesses have in this approach and reflects the huge opportunities that exist both in the Midlands and the UK.”
Kenilworth and Southam MP Jeremy Wright said: “I’ve long admired Lontra for its ideas and ambition; (this) announcement is a significant step forward for the firm and for the region. The Midlands is a centre of manufacturing excellence for Britain. Through the efforts of entrepreneurs such as Steve, we can extend our global influence and boost exports.”
