29.08.06
Aerospace take-off for Redruth firm

A Redruth engineering firm has announced a £350,000 investment programme for expansion into new markets, including aerospace, with six new jobs and a forecast sales increase of 40 per cent over the next three years.

Welding Electrode Store Ltd (WES) is currently 80 per cent reliant on the automotive sector, but aerospace, defence and medical are among key sectors that it will now target with advanced engineering products.

The aim is to drive advanced engineering sales up to 40 per cent of total turnover over the next five years. The project has been made possible with a funding package co-ordinated by Truro-based chartered accountants Bishop Fleming.

It includes an £83,000 grant from the South West of England Regional Development Agency (RDA), a £50,000 loan from the South West Investment Group (SWIG) and funding support through HSBC Bank and Sterling Capital.

The WES spending programme includes purchase of a CNC lathe, a CNC twin pallet machining centre, an Agie spark eroder, new business and production software and the erection of increased office space, a training room and a sterile finishing room.

The company, based on the Treleigh Industrial Estate, is one of the leading suppliers of resistance welding consumables to the UK automotive industry.

"WES is a modern day example of Cornwall's engineering heritage," said Ewan McClymont, Bishop Fleming business development manager. "A lot of traditional Cornish industry has been lost in the Redruth area, but here is one survivor who is driving forward into the future with diversification into the likes of aerospace!"

WES managing director Andrew Hosking commented: "Faced with increasing pressure to cut costs in the automotive sector, we have gradually steered the company towards advanced engineering and we are already building a strong reputation here. As well as creating six new jobs, the investment will also help protect our existing 29 employees."

Mr Hosking said the greater diversification would be made possible not only by the funding package but also with assistance from Cornwall Aerospace and Defence Initiative, to which WES is a major contributor, and West of England Aerospace Forum, a SWRDA-funded initiative.

Paul Wilson, business investment adviser for the South West RDA, said: "What WES is doing – creating highly skilled jobs and raising the game in terms of productivity – is just the type of project we look to support with the Selective Finance for Investment grant. This is focused on high quality, innovative projects that will lead to long-term benefits for South West England's economy."

SWIG fund manager John Peters commented: "We are delighted that our Objective One–backed funding will help WES to further expand into key new markets and be more competitive."

Valuable input had also come from Business Link. Colin Sawer, financial advice for business manager, said: "We are pleased to have been involved in liaison with all parties in structuring this deal."

For further information please contact Andrew Hosking, Welding Electrode Store Ltd on 01209 202800 or Ewan McClymont, Bishop Fleming on 01872 275651.

The Objective One Programme for Cornwall and the Isles of Scilly has invested in the South West Investment Group through the European Regional Development Fund (ERDF) and Business Link through the European Agricultural Guidance and Guarantee Fund (EAGGF) and the European Regional Development Fund (ERDF).

Editor's notes:

Clare Morgan
Media Relations Manager
Objective One Partnership Office
Castle House
Pydar Street
Truro TR1 2UD
Mobile: 07973 813647
Telephone: 01872 223439

cmorgan@cornwall.gov.uk

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