Record contract for Welsh engineering company

Phil Black - PII Editor 15/05/2014

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Bespoke Welsh engineering and design technology is to play a key role in making a transfer gear box for premium brand four wheel drive vehicles in Europe.

landed its biggest ever contract for an automated production facility for Borg Warner in Hungary, after beating competition from suppliers in Europe and the United States.

The contract has created two new posts for design engineers and the company is confident of continued growth as it secures customers in new markets.

A partner in the contract is Merthyr Tydfil based automation specialists, Tribotics Ltd, which has worked closely with BAW over the last three years to provide a complete control solution for special purpose machinery.

Tribotics Ltd is recognised as a leader in the field, having developed innovative systems to revolutionise the control of industrial machines.

To celebrate this Welsh business success story, Minister for Economy, Science and Transport, Edwina Hart, paid a visit to BAW’s headquarters today (Wednesday).

Mrs Hart said: “This new contract is excellent news for BAW Precision Engineering, an important employer in this area. I am very pleased to see the company grow and create new jobs.

“The Welsh Government is committed to supporting companies like BAW who are crucial to helping the Advanced Materials and Manufacturing sector grow.”

Formed in 1973, BAW Precision Engineering is a high quality, niche engineering company which designs and machines components in specialist alloys for customers in the automotive, aerospace, oil and gas, defence, medical and food sectors. In addition, the business designs and builds special purpose machinery, such as automated production facilities.

Winning the new contract is a major coup for the company, which designed the original production line for Borg Warner before the business moved to Germany from Kenfig in South Wales.

The contract is generating high skilled, well paid jobs and accelerating the company’s apprenticeship programme. Because of a shortage of skilled engineers, the company is growing its own for the future.

The workforce possesses more than 300 years of engineering know-how, which is now being shared with the next generation.

BAW was in a declining market seriously affected by the recession in 2009 when it was acquired by entrepreneur Paul Kilbride and turned around though a package of Welsh Government support on training, apprenticeships, business support and repayable business finance.

Mr Kilbride, who heads the Barnstable-based Troy Group, an engineering supply distributor owns two further companies on the same Alloy Industrial Park as BAW. Eurogrind and RG Tooling are part of the supply chain for the Borg Warner contract and together employ 19 staff.

Andrew Hoseason, BAW’s operations director, said the company’s turnover had grown by 34 per cent in the last two years and 2014 would see massive growth due to the Borg Warner contract.

“We are reshaping the business and I see the future for BAW remaining in high end CNC engineering but with a strong presence in the special purpose industrial machines market,” he added. “Our unique selling point is that we offer a service that is based on experience, ability and flexibility to ensure quality and delivery.

“The challenge in BAW has been to restrict our exposure to any one market and I am very optimistic about the future. Working with a spread of markets allows us flexibility to ensure the continued prosperity of the business.

“We are looking at further acquisitions to join our group towards the end of the year, which will give us a larger manufacturing base, allow us to be more competitive and increase our capacity.

“BAW has received a lot of support from the Welsh Government to improve and develop the workforce and the Minister’s visit is recognition of the business growth that has been achieved with their help.”