Systems manufacturer sets up German office to support growth
ONE of the West Midlands’ fastest growing manufacturers has set its sights on European expansion after launching its first overseas operation.
PP Electrical Systems, which employs more than 225 people at its Cheslyn Hay facility, has opened a dedicated sales and marketing and technical office in Germany to help it grow orders in the country.
The specialist in electrical, electromechanical and electronic assemblies and control systems is looking to build on more than £4.5m of orders to customers involved in machine tools, food packaging and semi-conductor production.
Located in the heart of Hamburg, the facility is headed up by local manufacturing expert Oliver Bluck and will help to support existing clients, target new markets and provide access to opportunities in Luxembourg and Switzerland.
“When you do business in Germany, you have to show commitment and a desire to build long-term relationships,” said the firm’s managing director Tony Hague.
“One of the best ways to do this is to become part of the local economy, employ local people and immerse yourself in the way they do business.”
“PP Electrical Systems GmbH was our response and, after taking six months to find the right office and the right member of staff to drive it, we now feel we’re in an ideal position to push forward into mainland Europe,” he added.
The German operation will initially employ two people with associate engineers brought in to offer technical support on existing contracts.
With industry’s desire to take advantage of total manufacturing solutions and the reduced lead times it gives firms, the company has picked up more than £2m of new contracts in the last year alone and expects to double that in 2012.
This takes PP Electrical’s direct export sales past 25% of its £24m annual turnover, with about 80% of its electronic assemblies and control systems destined for an end user overseas.
“All of the design and manufacturing stays in the UK and we see operations like the one in Hamburg as a way of giving the customer what they want…direct, on the ground service,” said Mr Hague.
“The German subsidiary may well be the start of many and there is definitely an opportunity for an additional base to explore massive growth in the United States of America.”
PP Electrical, which has recently committed to the SC21 aerospace and defence standard, has committed itself to lean manufacturing, which it employs throughout the business and many of its employees hold black or green belts in six sigma.
The firm is also one of 10 West Midlands companies that make up the Midlands Assembly Network. Members comprise: Advanced Chemical Etching, Alucast, Barkley Plastics, Brandauer, FW Cables, Lightning Aerospace, SMT Developments, Westley Engineering and Wrekin Circuits.
