Flooring firm invests £5m to increase plant capacity
Flooring specialist Airea is to invest £5m increasing capacity in its Ossett factory and automating processes using AI imagery and inspection technology.
The expansion, due to begin in March and complete in early 2025, will be funded from current reserves, existing bank facilities and ongoing cash generation.
In a trading update, the firm said it has seen strong sales growth in the year to the end of December, an increase in low double figures over last year, with key wins in export markets and continued interest in low-carbon and carbon neutral products.
The firm introduced new sustainability principles in December 2022, enabling it to become more efficient and carbon friendly across its operational model. The new investment will allow it to increase production and introduce further efficiencies, further improving its sustainability credentials.
Chair Martin Toogood said, “The investment in our existing manufacturing facility is pivotal in providing additional capacity and will enable us to evolve our existing processes providing a strong platform for growth. Delivering growth through this investment is a fundamental part of our ongoing strategy and enabling us to capitalise on future market opportunities.”
Chief executive Mederic Payne said, “The investment in the manufacturing facility will be transformational for the business, providing more modern manufacturing standards for the next decade, and beyond. It will enable the Group to operate more efficiently, act more sustainably and increase production volumes to satisfy the expansion in customer orders and their broader requirements.
“A significant step change in the business is our intention to invest for future sales growth, incorporating the Group’s eco2matters sustainability principles and the journey towards net zero.”
He added, “This investment is key to the business in delivering growth aligned with developing our strategy for the long-term benefit of both the Company and its shareholders.”
