News Article
A rejuvenated Northumberland engineering company is celebrating landing a £500,000 contract with commercial vehicle giant Scania after fighting back from the brink of closure.
Cramlington Precision Forge will manufacture complex gear and clutch parts for the Swedish company’s range of trucks from mid-summer.
It’s the second major contract success in a year for the firm after winning £1m worth of new business to supply clutches to the MAN Group, one of Europe’s largest manufacturers of commercial vehicles.
The firm has worked closely with the One North East-funded North East Productivity Alliance (NEPA) to raise productivity as part of a transformation of its business since new Indian owners Sundram Fasteners Ltd – part of the TVS group – bought the plant just over three years ago.
The factory – based at North Nelson Industrial Estate, Cramlington – faced being closed by its former owner in 2003 with production moved to Hungary.
After an initial introduction from NEPA Engineering Fellow Keith Copeland, NEPA Engineer Neil West and consultant Alex Macphie carried out an analysis of working practices at Cramlington Precision Forge with both management and shopfloor workers and ingrained the latest lean manufacturing techniques into the company.
The result is a new lean two-shift system turning out up to 6,000 more component gear parts every week – with an on-going determination to build on the NEPA principles.
Managing director Steve Rose has his sights firmly fixed on winning more new business with Cramlington Precision Forge now fully exploiting its niche market position of making highly specialised component parts for differentials, clutches and professional power tools.
Its other customers include DAF, Black & Decker, Dana, CNH and Parker Hannifin. Mr Rose said: “Since late 2003, our sales have grown to £4.5m and we have diversified our product range into professional power tools.
“Securing the Scania contract was fantastic news for the company – it represents more than 10% of company growth and hopefully is just the tip of the iceberg.
“This deal means strengthening job security and we will look at increasing our 55-strong workforce accordingly.” Cramlington Precision Forge turned to productivity experts at NEPA to help raise output to keep it one step ahead of its main German competitor in the wake of its Scania and MAN contracts.
One North East has supported the growth of Cramlington Precision Forge in the past through the offer of a total of £379,000 in RSA and SFI grants.
Andrew Nevins, manufacturing engineer, said: “We knew that we were performing okay within our press shop but also that we could do a lot better.
“We have improved our communication and now have daily planning meetings to set out exactly what we are going to do that day and no job is undertaken without the tools being there to do it.
“NEPA’s strategies are excellent – they are sustainable and we are working to cement them into our business as we move forward.”
Colin Herron, NEPA Head of Dissemination of Best Practice, said: “Cramlington Precision Forge is going from strength to strength after adopting NEPA principles which is a tribute to the hard work and foresight of both management and shopfloor staff.”
Mr Copeland, a quality assurance engineer for Nissan, said: “The company has taken on board the latest tools and techniques and is showing clear improvements in productivity per head and savings from scrap reduction,” he said. “It’s all part of a complete culture change programme and I’m delighted to see the firm embracing this so wholeheartedly.”
Ends.
For further information please contact:
Gordon Arnott, Senior Press Officer, One North East.
Tel:(0191) 229 6309 Fax:(0191) 229 6234 Mobile: 07713 317883
e-mail: gordon.arnott@onenortheast.co.uk
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