Automotive components to entire vehicles

A leading UK engineering company has gone from supplying automotive components to building entire vehicles.

A leading UK engineering company has gone from supplying automotive components to building entire vehicles.

Tanfield Engineering Systems has become expert at moving up the value chain, winning significant long term outsourcing contracts from blue chips along the way.

But now this unique company is going a step further, by designing, engineering and building its own specialist vehicles and plant machinery.

Michael Wright, Tanfield director, said: "In less than 18 months, we moved from making car components for the likes of Land Rover to building entire 7.5 tonne vehicles." Tanfield Engineering Systems is based in Stanley, County Durham, where it has a 250,000sq ft facility.

It is part of The Tanfield, which is listed on the Alternative Investment Market and employs more than 500 staff.

The company began life as two engineering concerns: HMH Sheet Metal Fabrication and automotive component supplier e2a.

Tanfield exited high volume, low margin component supply in 2004.

Instead, it refocused the business as a provider of single source engineering solutions for blue chip clients in a range of sectors, including defence, rail, health and construction.

Typical contracts can feature everything from fabrication to complex assembly, painting and the integration of electrics, pneumatics, hydraulics and electronics.

Tanfield took the whole process a step further when it bought one of its customers, SEV.

Tanfield was already building a range of commercial electric vehicles and powered access platforms (cherry pickers) for SEV.

"We basically ate them from the inside," said Mr Wright.

"We were their biggest supplier and we saw the potential to grow that business in significant markets, so it was a natural progression." Tanfield harnessed its engineering expertise to improve the products, while its sales and marketing resource re-launched the key brands.

These included the Aerial Access range of powered access platforms; Smith Electric Vehicles; and airport tow tractor range Jumbotugs.

This strategy proved such a success that Tanfield has since acquired a further airport vehicle brand, Norquip; and another well known powered access manufacture, UpRight.

Mr Wright said: "We now have a major presence in the airport vehicles sector and are the biggest commercial electric vehicle manufacturer in Europe.

"Every acquisition brings with it new challenges, but also enhances the skill set of our workforce and enriches our design and engineering knowledge.

"We have grown from 130 employees in 2004 to over 500 now - and the recent acquisition of UpRight will see us double in size again, both in terms of staff and manufacturing space." The plc recently announced it made £2m profits in 2005, with turnover more than doubling, to £22m.

The provision of intelligent engineering solutions has led to a doubling of the sub-contract order book.

Recent successes include a £1m order from an industrial vehicle manufacturer and a £500,000 contract to supply assemblies for a military vehicle.

Mr Wright said: "It is always especially pleasing to win new business from an existing customer.

"It proves we are delivering a high quality service, at a competitive price." The strategy has seen sales soar and enquiries are at an all-time high.

Firm enquiries include £1.5m of business from a Leading international crane manufacturer; £4m from a specialist vehicle manufacturer; and a multi-million pound enquiry from an industrial vehicle manufacturer.

Francis Harkin, business development manager, said: "UK engineering companies have to add value and offer clients something they cannot get from developing countries with cheaper manufacturing and engineering capabilities.

"While major manufacturers could probably source components cheaper in China for example, Tanfield has the technical expertise to produce these components and assemble them into complete products." Tanfield Engineering Systems has also launched a new website, www.tanfieldengineeringsystems.com.

Mr Harkin said: "The re-branding of what was HMH Sheet Metal Fabrication is part of a significant investment to grow the Tanfield brand and realise its potential.

"We excel at working in partnership with blue chip manufacturers in a range of sectors and believe there is further scope for growth in this market.

"We have implemented an aggressive sales and marketing strategy to win new business and the website is a key element in that.".

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