Its boom time for Crabtree
The Journal
4th February 2010
Engineering firm Crabtree has recruited 50 staff in the past few months and plans to take on at least 10 more after a surge in orders on the back of favourable exchange rate fluctuations. In recent months the Gateshead-based firm has landed orders for six of its metal printing machines worth £4.9m which has seen it take staff umbers to 160.
And the company believes the success will see revenues increase from £13.5m last year to £20m this year.
Managing director Stephen McDowell, who owns 80% of the company said: “Orders have picked up significantly since the middle of last year and we recently secured two large orders with Chinese companies for six new machines which is valued at £4.9m.
“We have recruited 50 new staff to cope with the increase in work in the last year and we are now recruiting for a further 10 now.
“We normally run on a four-month order book, but for this year we have orders through to December, and 2011 is already shaping up to be healthy.”
Economists say the North East’s economic recovery, and also that of the UK, will be based on manufacturing exports to fast-growing emerging countries – such as the BRIC (Brazil, Russia, India, China) economies – which is helped by the depressed value of the pound.
The company is one of only three firms across the globe which makes machines which print on to the metal sheets that are used in tin cans and bottle top packaging. Started in the 1970s and formerly run by North East entrepreneur Karl Watkin, Crabtree nearly went under but was saved by Mr McDowell and business partner Bill Athey in 2003 along with private equity backers Newcastle-based NVM.
Crabtree, which recently secured its first UK order for 15 years, sees Asia as its main growth market in the coming years.
It has recently secured orders in Thailand, India, Hong Kong, Syria and Turkey as well as South Africa.
Mr McDowell added: “It’s a very good period for the firm.
“We are experiencing great growth in demand.
“This is also good news for our suppliers in the North East.” The Team Valley-based is considering the need to possibly secure additional manufacturing space.
Newcastle-based accountants Tait Walker structured the firm’s recent deals.
Iain Richardson, director in corporate finance at Tait Walker, said: “Crabtree is going through a period of rapid growth and we are continuing to support its ambitions.”
Crabtree, which once employed 450 people, nearly went out of business with debts of more than £1m before its MBO from German parent company LTG Technologies in 2003.