2016 / 2017 - Union Colours Ltd · RJG Technologies Scientifi c Management International Chamcotec...
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A Y E A R I N P E R S P E C T I V E
2016 / 2017
©2017 WESTMINSTER PUBLICATIONS www.theparliamentaryreview.co.uk
MANUFACTURING & SERVICES
F O R E W O R D S
Th e Rt Hon Th eresa May MPStephen ElliotPhilip Law
C H E M I C A L S , P L A S T I C S & C O S M E T I C S R E P R E S E N T A T I V E S
DS Smith Plastics
Farrel
Amaray
Abril Industrial Waxes
Union Colours
Stort Chemicals
SI Protech
Radici Group Performance Plastics
Applied Coating Technologies
RJG Technologies
Scientifi c Management International
Chamcotec
Essential Earth
Scent Perfi que
Trent Oil Lubricants
F E A T U R E S
Review of the YearReview of Parliament
1FOREWORD | 1
Foreword
This year’s Parliamentary Review follows a significant year in British politics. It was a year in which our economy continued to grow, as the Government followed its balanced plan to keep the public finances under control while investing to build a stronger economy. It was a year in which we began to deliver on the result of the EU referendum by triggering Article 50 and publishing the Repeal Bill, which will allow for a smooth and orderly transition as the UK leaves the EU, maximising certainty for individuals and businesses.
And, of course, it was a year in which the General Election showed that parts of our country remain divided and laid a fresh challenge to all of us involved in politics to resolve our differences, deal with injustices and take, not shirk, the big decisions.
That is why our programme for government for the coming year is about recognising and grasping the opportunities that lie ahead for the United Kingdom as we leave the EU. The referendum vote last year was not just a vote to leave the EU – it was a profound and justified expression that our country often does not work the way it should for millions of ordinary working families. So we need to deliver a Brexit deal that works for all parts of the UK, while continuing to build a stronger, fairer country by strengthening our economy, tackling injustice and promoting opportunity and aspiration.
In the year ahead we will continue to bring down the deficit so that young people do not spend most of their working lives paying for our failure to live within our means. We will take action to build a stronger economy so that we can improve people’s living standards and fund the public services on which we all depend. We will continue with our modern Industrial Strategy,
deliver the next phase of high-speed rail, improve our energy infrastructure and support the development of automated vehicles and satellite technology, building a modern economy which creates the high-skill jobs of the future.
At the same time, work needs to be done to build a fairer society – where people can go as far as their talents will take them and no one is held back because of their background. So we will continue to work to ensure every child has the opportunity to attend a good school. We will continue to invest in the NHS and reform mental health legislation, making this a priority. And we will work to address the challenges of social care for our ageing population, bringing forward proposals for consultation to build widespread support.
So this is a Government determined to deliver the best Brexit deal, intent on building a stronger economy and a fairer society, committed to keeping our country safe, enhancing our standing in the wider world, and bringing our United Kingdom closer together. We will continue to put ourselves at the service of millions of ordinary working people for whom we will work every day in the national interest.
Th e Rt Hon Th eresa May MPPrime Minister
This year’s Parliamentary Review follows a significant year in British politics
“ “
| FOREWORD2
Foreword
In chemical and pharmaceutical businesses there is a continued feeling of optimism about the UK as chief executives look to the year ahead. While of course we are all monitoring and seeking to influence Brexit negotiations and the challenges it poses, right now our businesses feel positive about the outlook. And that view is from an industry where companies, in survey after survey, said they did not want our country to leave the European Union. What matters is to get the best outcome for the UK but also for the EU – our biggest customer market.
At the time of the last Review the Department for Business, Energy and Industrial Strategy had just been established. We had the name. Now we have a better idea of government thinking with the green paper published earlier this year. In our response we set out how, in partnership with government, we could decarbonise the economy, continue to provide jobs for thousands of skilled workers and set the innovative future the like of which the world has not seen.
An important part of our work is our reputation and ensuring that we listen to the public and to opinion leaders. In the latest survey across 12 European countries, the UK came a close second to Finland with both audiences and, in 16 ‘Reputation Drivers’ we are first or equal first in eight, second or equal second in seven and third in the other. We want our reputation to be as high as it can be, and we are not complacent. The UK general public’s view of the net benefits of chemicals versus the risk are 47% (survey average is 24) and with opinion leaders it is 48% (average is 38%).
There is more we would like to do to improve our reputation, which involves listening to feedback and comments about the industry. There is an argument that in certain circumstances the best thing to do, reputation-wise, is to simply listen. Not every point, every issue or every view demands an immediate comment. It can be better to not only give the appearance of listening or to listen just in order to reply; but to really listen to understand.
You don’t build a reputation by continually banging on about your own issues and not listening to the views of others. It is by regularly and proactively listening – something our companies do week in week out through town hall meetings on issues such as shale gas – that we can really drive a sustained change in the perception of our industry and, more broadly, business.
In chemical and pharmaceutical businesses there is a continued feeling of optimism about the UK
“ “Stephen ElliotChief Executive of the Chemical Industries Association
3FOREWORD | 3
Foreword
The UK Plastics industry is crucial to the UK’s economic
success. Its products support many other sectors, including
car production, healthcare, construction and packaging
– to name but a few. Our annual sales turnover is
£23.5 billion and we are one of the UK’s biggest
industrial employers, with a workforce of 166,000.
Plastics will be the material of the 21st century. Their
light weight brings energy savings and reduces pollution
in transport applications. Their excellent insulation
properties provide energy efficiencies in buildings. As the
global population rises, plastics packaging will prevent
food wastage through its durability, effective barriers
and tight seals.
The British Plastics Federation (BPF), which represents the
entire sweep of the industry including raw material supply,
machinery and equipment suppliers, plastic processors
and recyclers, is the oldest plastics trade federation in
the world and the only one to represent all aspects of the
industry under one umbrella — a true one-stop-shop for
plastics. This provides the UK plastics industry with a great
competitive advantage. We have an extensive global reach
and our website is one of the most authoritative platforms
for plastics in the English language (visit: www.bpf.co.uk).
We can source market intelligence from all corners of the
globe and create real economies of scale.
The good news is that the UK is a global leader in all these
areas – and we plan to consolidate this position. The British
Plastics Federation has launched a strategy, which maps
out the critical requirements to keep the UK a key global
player. We have set ourselves a progressive environmental
agenda, building on recycling achievements, embarked
on an education and skills initiative and pointed to the
future importance of shale gas as a competitive source
of raw materials. We will also focus on innovation in
energy-efficient products and develop our manufacturing
efficiency by exploring the possibilities of Industry 4.0.
In the light of Brexit it is imperative that the Government
recognises the importance of the UK plastics industry to
the entire manufacturing and distributive sectors and is
correspondingly supportive.
We are players in an international industry. We import
over 50% of our raw materials and most of our
processing equipment. A significant degree of UK
industry is foreign owned – as are our customers. Full
access to the European single market is therefore crucial
for our competitiveness.
We are the third largest manufacturing sector in terms
of employment. Over 18,000 of our employees are from
other EU Member States. We need assurance that their
working rights will be undiminished and that we will
have full access to the manpower we require to develop
the industry.
There will inevitably be a focus on overseas business
development. We need the full support of the UK
Government export programmes, particularly aimed at
small and medium-sized enterprises.
The UK plastics industry should certainly be on MPs’
radar screens as they are likely to have one or more
plastics companies in their constituencies. These local
companies may contact MPs to discuss these points
– so please be mindful of all that the plastics industry
brings to the UK and help us remain a key player on the
international stage.
Philip LawDirector General of the British Plastics Federation
3FOREWORD | 3
Foreword
The UK Plastics industry is crucial to the UK’s economic
success. Its products support many other sectors, including
car production, healthcare, construction and packaging
– to name but a few. Our annual sales turnover is
£23.5 billion and we are one of the UK’s biggest
industrial employers, with a workforce of 166,000.
Plastics will be the material of the 21st century. Their
light weight brings energy savings and reduces pollution
in transport applications. Their excellent insulation
properties provide energy efficiencies in buildings. As the
global population rises, plastics packaging will prevent
food wastage through its durability, effective barriers
and tight seals.
The British Plastics Federation (BPF), which represents the
entire sweep of the industry including raw material supply,
machinery and equipment suppliers, plastic processors
and recyclers, is the oldest plastics trade federation in
the world and the only one to represent all aspects of the
industry under one umbrella — a true one-stop-shop for
plastics. This provides the UK plastics industry with a great
competitive advantage. We have an extensive global reach
and our website is one of the most authoritative platforms
for plastics in the English language (visit: www.bpf.co.uk).
We can source market intelligence from all corners of the
globe and create real economies of scale.
The good news is that the UK is a global leader in all these
areas – and we plan to consolidate this position. The British
Plastics Federation has launched a strategy, which maps
out the critical requirements to keep the UK a key global
player. We have set ourselves a progressive environmental
agenda, building on recycling achievements, embarked
on an education and skills initiative and pointed to the
future importance of shale gas as a competitive source
of raw materials. We will also focus on innovation in
energy-efficient products and develop our manufacturing
efficiency by exploring the possibilities of Industry 4.0.
In the light of Brexit it is imperative that the Government
recognises the importance of the UK plastics industry to
the entire manufacturing and distributive sectors and is
correspondingly supportive.
We are players in an international industry. We import
over 50% of our raw materials and most of our
processing equipment. A significant degree of UK
industry is foreign owned – as are our customers. Full
access to the European single market is therefore crucial
for our competitiveness.
We are the third largest manufacturing sector in terms
of employment. Over 18,000 of our employees are from
other EU Member States. We need assurance that their
working rights will be undiminished and that we will
have full access to the manpower we require to develop
the industry.
There will inevitably be a focus on overseas business
development. We need the full support of the UK
Government export programmes, particularly aimed at
small and medium-sized enterprises.
The UK plastics industry should certainly be on MPs’
radar screens as they are likely to have one or more
plastics companies in their constituencies. These local
companies may contact MPs to discuss these points
– so please be mindful of all that the plastics industry
brings to the UK and help us remain a key player on the
international stage.
Philip LawDirector General of the British Plastics Federation
4 | ANDREW NEIL
Andrew Neil
Return of the Two Party SystemThe BBC’s Andrew Neil gives his take on the state of Parliament following the June 2017 general election.
It was a year in which politicians learned not only of the power of a referendum to overrule the will of Parliament – but of its power to change the party system in which they operate. Nobody saw this coming. But, in retrospect, perhaps we should have, since we had the fallout from the Scottish referendum to guide us.
In the autumn of 2014 the Scots voted 55%-45% to remain part of the United Kingdom. That was supposed to settle the matter of Scottish independence for a generation, until some Scottish Nationalists began regarding a generation as no more than a couple of years. But in post-referendum elections to Holyrood and Westminster, it also recast the Scottish party system.
Remember, Scotland had been one of the first parts of the UK to throw off the British two-party system and replace it with a multi-party choice of SNP, Labour, Tory, Green, Lib Dem and even UKIP. But as the constitutional issue took centre-stage – and remained there even after the referendum – Scottish voters coalesced round a binary choice: for or against independence.
Thus was a new two-party system born of a centre-left Nationalist party (the SNP) and a centre-right Unionist party (the Scottish Tories). The other parties have not been completely obliterated, especially in Holyrood with its peculiar voting system. But by the general election of 2017 Scotland had become a battle between a dominant
Neil believes two referendums have redrawn the map of British politics.
Nationalist party and a resurgent Tory party representing the Union. Two-party politics was back north of the border.
So we should have been prepared for something similar when Britain voted 52% to 48% to leave the European Union in the June 2016 referendum. At the time, we remarked on the power of referenda to overrule both the Commons (where MPs were 65% pro-EU) and the Lords (probably 80% pro-EU). What we did not see was how the Brexit referendum would reconfigure English politics just as the Scottish referendum had redrawn Scottish politics.
So we were taken by surprise for a second time. In this year’s general election – perhaps the single biggest act of self-harm a sitting government has ever inflicted on itself – almost 85% in England voted either Conservative or Labour. The English had not voted in such numbers for both major parties since 1970, when the post-war two-party system began to wane – and declined in subsequent elections to a point where barely 65% voted Tory or Labour, encouraging some commentators to think the decline terminal.
The referendum, however, reversed the decline. The Brexit vote ended the schism on the Eurosceptic Right as UKIP voters returned to the Tory fold; and those on the Left of the Greens and the Lib Dems flocked to Jeremy Corbyn’s more ‘Red Flag’ Labour offering. So, as in Scotland previously, two-party politics was back with a vengeance in England too.
But without one crucial element. Our historic two-party system regularly produced one-party government for the life of a Parliament. But our new two-party system has produced a hung Parliament with no party having an overall majority. This knife-edge parliamentary arithmetic means the smaller parties may be down – but they are not out.
The Conservatives need an alliance with one small party (Ulster’s DUP) to be sure of a majority. Even then, with the Tories and Labour divided over Brexit, no majority on any issue will be certain and on many votes the smaller parties will be pivotal in determining many outcomes.
So politicians return from their summer recess to a great parliamentary paradox: the two-party system has resurrected itself but rather than bringing with it the stability and certainty of the two-party politics of old, almost every major vote in the months ahead will be uncertain and unpredictable – and politics will be peculiarly unstable. Power will rest in Parliament. Government will be able to take nothing for granted. No vote will be in the bag until all the votes are counted. Westminster will have a new lease of life – perhaps even a spring in its step. Our democracy might be all the better for it.
The Rt Hon Greg Clark MP was one of several speakers at the EEF National Conference, addressing the challenges and opportunities that face the UK’s manufacturing sector
Overview
Brexit, reshoring, better and cheaper technology, competition, digitisation, and how people will work in the future have all converged to make manufacturing examine its place in the British economy more keenly than ever before. That was evident at Engineering Employers’ Federation’s (EEF)’s National Conference in February where over 850 people swelled to hear from the Rt Hon Greg Clark MP, columnist Martin Wolf, businesswoman Jo Malone and others about the importance of this once neglected sector.
The news, in general, is pretty good.
There is the optimistic view and the more pessimistic view on the future of manufacturing, the pessimism being driven by Brexit fears and a sharp fall in automotive investment this year to £644 million (forecast) from the £2.5 billion it recorded in 2014. Some facts are unambiguous. Productivity in the UK compared with our peer group in Europe is low, although this baffles many in manufacturing who have invested years on making their processes and people much leaner. In fact, EEF can demonstrate that productivity in the manufacturing sector is higher than in services.
The UK is ‘top heavy’ in services, with just 10% of gross domestic product (GDP) from manufacturing, although 68% of business research and development (R&D) is in manufacturing. While the 10% proportion is consistent with other G20 countries (Britain is the 9th biggest manufacturing economy), government recognises the need to diversify the economy. Increasing the number of profitable, high-tech manufacturing firms – often with well-paid jobs – is a good way. And with new technology and a more engaged media, the sector is being seen in a new way by a greater number of people and is losing its ‘oily factory worker’ stigma.
Technology, especially factory automation, is increasingly replacing lower-skilled repetitive jobs, meaning that more of the jobs that remain require engineering skills, soft skills and management and are more enriching and better paid than before.
However, many sectors and businesses still rely heavily on semi-skilled, lower-paid work to assemble and process products such as food and utility goods, and skilled specialist work such as car assembly, which is secure, is not highly paid. Brexit has boosted exports by devaluing the pound, however it has increased input costs for many firms which buy raw materials from Europe.
Generally, manufacturing as a sector has had a strong half year. The Markit /CIPS UK manufacturing Purchasing Managers Index (PMI), the widely-accepted barometer of manufacturing health, jumped to 57.3 in April from 54.2 in March – the highest level in three years. Forward to July and industrial output has slipped. But, for industry, the UK is in stable and modestly-growing territory. Other countries are growing faster, though.
Review of the Year
5REVIEW OF THE YEAR |
MANUFACTURING & SERVICES
4 | ANDREW NEIL
Andrew Neil
Return of the Two Party SystemThe BBC’s Andrew Neil gives his take on the state of Parliament following the June 2017 general election.
It was a year in which politicians learned not only of the power of a referendum to overrule the will of Parliament – but of its power to change the party system in which they operate. Nobody saw this coming. But, in retrospect, perhaps we should have, since we had the fallout from the Scottish referendum to guide us.
In the autumn of 2014 the Scots voted 55%-45% to remain part of the United Kingdom. That was supposed to settle the matter of Scottish independence for a generation, until some Scottish Nationalists began regarding a generation as no more than a couple of years. But in post-referendum elections to Holyrood and Westminster, it also recast the Scottish party system.
Remember, Scotland had been one of the first parts of the UK to throw off the British two-party system and replace it with a multi-party choice of SNP, Labour, Tory, Green, Lib Dem and even UKIP. But as the constitutional issue took centre-stage – and remained there even after the referendum – Scottish voters coalesced round a binary choice: for or against independence.
Thus was a new two-party system born of a centre-left Nationalist party (the SNP) and a centre-right Unionist party (the Scottish Tories). The other parties have not been completely obliterated, especially in Holyrood with its peculiar voting system. But by the general election of 2017 Scotland had become a battle between a dominant
Neil believes two referendums have redrawn the map of British politics.
Nationalist party and a resurgent Tory party representing the Union. Two-party politics was back north of the border.
So we should have been prepared for something similar when Britain voted 52% to 48% to leave the European Union in the June 2016 referendum. At the time, we remarked on the power of referenda to overrule both the Commons (where MPs were 65% pro-EU) and the Lords (probably 80% pro-EU). What we did not see was how the Brexit referendum would reconfigure English politics just as the Scottish referendum had redrawn Scottish politics.
So we were taken by surprise for a second time. In this year’s general election – perhaps the single biggest act of self-harm a sitting government has ever inflicted on itself – almost 85% in England voted either Conservative or Labour. The English had not voted in such numbers for both major parties since 1970, when the post-war two-party system began to wane – and declined in subsequent elections to a point where barely 65% voted Tory or Labour, encouraging some commentators to think the decline terminal.
The referendum, however, reversed the decline. The Brexit vote ended the schism on the Eurosceptic Right as UKIP voters returned to the Tory fold; and those on the Left of the Greens and the Lib Dems flocked to Jeremy Corbyn’s more ‘Red Flag’ Labour offering. So, as in Scotland previously, two-party politics was back with a vengeance in England too.
But without one crucial element. Our historic two-party system regularly produced one-party government for the life of a Parliament. But our new two-party system has produced a hung Parliament with no party having an overall majority. This knife-edge parliamentary arithmetic means the smaller parties may be down – but they are not out.
The Conservatives need an alliance with one small party (Ulster’s DUP) to be sure of a majority. Even then, with the Tories and Labour divided over Brexit, no majority on any issue will be certain and on many votes the smaller parties will be pivotal in determining many outcomes.
So politicians return from their summer recess to a great parliamentary paradox: the two-party system has resurrected itself but rather than bringing with it the stability and certainty of the two-party politics of old, almost every major vote in the months ahead will be uncertain and unpredictable – and politics will be peculiarly unstable. Power will rest in Parliament. Government will be able to take nothing for granted. No vote will be in the bag until all the votes are counted. Westminster will have a new lease of life – perhaps even a spring in its step. Our democracy might be all the better for it.
The Rt Hon Greg Clark MP was one of several speakers at the EEF National Conference, addressing the challenges and opportunities that face the UK’s manufacturing sector
Overview
Brexit, reshoring, better and cheaper technology, competition, digitisation, and how people will work in the future have all converged to make manufacturing examine its place in the British economy more keenly than ever before. That was evident at Engineering Employers’ Federation’s (EEF)’s National Conference in February where over 850 people swelled to hear from the Rt Hon Greg Clark MP, columnist Martin Wolf, businesswoman Jo Malone and others about the importance of this once neglected sector.
The news, in general, is pretty good.
There is the optimistic view and the more pessimistic view on the future of manufacturing, the pessimism being driven by Brexit fears and a sharp fall in automotive investment this year to £644 million (forecast) from the £2.5 billion it recorded in 2014. Some facts are unambiguous. Productivity in the UK compared with our peer group in Europe is low, although this baffles many in manufacturing who have invested years on making their processes and people much leaner. In fact, EEF can demonstrate that productivity in the manufacturing sector is higher than in services.
The UK is ‘top heavy’ in services, with just 10% of gross domestic product (GDP) from manufacturing, although 68% of business research and development (R&D) is in manufacturing. While the 10% proportion is consistent with other G20 countries (Britain is the 9th biggest manufacturing economy), government recognises the need to diversify the economy. Increasing the number of profitable, high-tech manufacturing firms – often with well-paid jobs – is a good way. And with new technology and a more engaged media, the sector is being seen in a new way by a greater number of people and is losing its ‘oily factory worker’ stigma.
Technology, especially factory automation, is increasingly replacing lower-skilled repetitive jobs, meaning that more of the jobs that remain require engineering skills, soft skills and management and are more enriching and better paid than before.
However, many sectors and businesses still rely heavily on semi-skilled, lower-paid work to assemble and process products such as food and utility goods, and skilled specialist work such as car assembly, which is secure, is not highly paid. Brexit has boosted exports by devaluing the pound, however it has increased input costs for many firms which buy raw materials from Europe.
Generally, manufacturing as a sector has had a strong half year. The Markit /CIPS UK manufacturing Purchasing Managers Index (PMI), the widely-accepted barometer of manufacturing health, jumped to 57.3 in April from 54.2 in March – the highest level in three years. Forward to July and industrial output has slipped. But, for industry, the UK is in stable and modestly-growing territory. Other countries are growing faster, though.
Review of the Year
THE PARLIAMENTARY REVIEW
Review of the Year
6 | REVIEW OF THE YEAR
The Industrial Strategy, the detail of
which is expected to come in the 2017
Autumn Statement, is designed to
thread together current government and
industry investments across research,
industry, skills development, energy
and infrastructure. It is also expected to
include new ambitious plans in areas
such as digitisation, robotics, artificial
intelligence and energy storage, and
stitch these together into a single,
cogent national strategy.
It has 10 pillars, ranging from investing
in science, research and innovation to
rebalancing growth across the whole
country, by providing development
funding for big infrastructure upgrades
such as the Midlands Rail Hub and
Northern Powerhouse Rail.
‘The Industrial Strategy is crucial,’ says
Terry Scuoler, Chief Executive Officer
of the manufacturers’ organisation,
the Engineering Employers’ Federation
(EEF). ‘Currently the economy is on an
even keel and manufacturing is quite
robust. While the sun is shining you fix
the roof, and Government has seen we
have to do it now,’ he emphasises.
The strategy is full of good things, of
which industrialists across the board,
from the silver-haired director to the
20-something design engineer, will
approve. Few would argue with its
top pillar: investing in research and
development (R&D) and developing skills.
It says skills shortfalls in some parts of the country contribute to imbalances in productivity in the UK, as shown in a recent Confederation of British Industry (CBI) report, highlighting education and skills as the biggest determinants of regional variations in productivity. It pushes for more and better technical training.
In the Budget, the Government announced new money for technical education to fund the new T-Level qualification for technical education. The Government said it was ‘the most ambitious post-16 education reform since the introduction of A-levels.’
Scuoler says of the Industrial Strategy ‘Politicians are becoming more aligned with industry and its needs. Catapults
Industrial Strategy
‘Everyone is looking at manufacturing. It
is essential to take into context that much
of the rest of the world is doing much
better,’ says Engineering Employers’
Federation’s (EEF) Chief Economist, Lee
Hopley. ‘Global growth forecasts for
many countries are ahead of ours.’
In January, the Government launched
proposals for ‘a modern industrial strategy
to build on Britain’s strengths and tackle
its underlying weaknesses to secure a
future as a competitive, global nation.’
A systemic weakness in the
manufacturing base and the economy
restrains the levels of exports. Total
exports of goods and services in
2016 were circa £550 billion, with
manufacturing comprising 45% of this.
The Prime Minister received a short tour of the facilities at the National Science and Innovation Campus while launching proposals for building a Modern Industrial Strategy
Chemicals: Brexit, industrial strategy and future innovation
are being seen as valuable and effective.
They are reaching more SMEs, and
while they can never reach them all, the
innovation ecosystem that Catapults
and Innovate UK represent are helping
SMEs, not only big companies.’
A survey of member companies of the
Chemical Industries Association (CIA)
highlighted that retaining tariff-free
access to the EU single market is the
biggest concern. Frictionless trade,
regulatory consistency and access to
skilled workers are identified as the
priorities to maintain UK chemical
industry growth in the light of Brexit.
More than three-quarters of the
member companies surveyed by CIA
in March and April 2017 said that the
introduction of customs barriers would
have a significant impact on their
businesses. At least 40% of the UK’s
chemical exports are destined for the
EU, CIA says, and about two-thirds of
these would be subject to tariffs should
the UK leave the single market without
a trade agreement.
A similar proportion of chemical
imports from the EU into the UK
would be affected by tariffs, pushing
up prices of raw materials for
downstream manufacturers. CIA adds
that some key raw materials used by
UK manufacturing industries have no
alternative non-EU source.
Certainty over the regulatory landscape
is also important, and a key priority for
CIA is to secure regulatory continuity as
part of the Repeal Bill.
‘For years now UK companies have
complied with European Union
chemicals regulations including REACH
– the regulation for the Registration,
Evaluation, Authorisation and Restriction
of chemicals – and CLP – the regulation
for the Classification, Labelling and
Packaging of chemicals,’ says CIA Chief
Executive, Stephen Elliott.
‘Our industry is highly regulated, and
has to be, in order to give assurance.
Chemical businesses across the UK
will be grateful for any certainty and
continuity that this Bill provides.’
If UK companies are no longer allowed
to register chemicals for export to the
EU under REACH and have to go via
a EU-based representative, the cost of
compliance with the regulations will
increase greatly. The vast majority of
the CIA survey respondents believe
that regulatory continuity is going to
be critical.
The Government’s green paper on
industrial strategy, which was published
in January, was described by CIA as a
‘golden opportunity’ to build on the
work that has already been done by
the Chemistry Growth Partnership
since it was established in 2013. This
strategic collaboration brings together
industry, trade unions and Government
to reinforce the strength of the UK
chemical sector. The hope is that its
work will lay the foundation for a
Sector Deal for the chemical industry.
The sector should also benefit from
some of the additional £2 billion in
research and development (R&D)
investment via the Industry Challenge
Fund that the green paper introduced.
In the absence of domestic fracking
production, INEOS landed its first shale
gas from the US at its Grangemouth
refinery in September, having invested in
a fleet of ships to transport the ethane
across the Atlantic. The Grangemouth
Brexit presents a challenging time for the UK chemical industry
7REVIEW OF THE YEAR |
MANUFACTURING & SERVICES
Chemicals: Brexit, industrial strategy and future innovation
are being seen as valuable and effective.
They are reaching more SMEs, and
while they can never reach them all, the
innovation ecosystem that Catapults
and Innovate UK represent are helping
SMEs, not only big companies.’
A survey of member companies of the
Chemical Industries Association (CIA)
highlighted that retaining tariff-free
access to the EU single market is the
biggest concern. Frictionless trade,
regulatory consistency and access to
skilled workers are identified as the
priorities to maintain UK chemical
industry growth in the light of Brexit.
More than three-quarters of the
member companies surveyed by CIA
in March and April 2017 said that the
introduction of customs barriers would
have a significant impact on their
businesses. At least 40% of the UK’s
chemical exports are destined for the
EU, CIA says, and about two-thirds of
these would be subject to tariffs should
the UK leave the single market without
a trade agreement.
A similar proportion of chemical
imports from the EU into the UK
would be affected by tariffs, pushing
up prices of raw materials for
downstream manufacturers. CIA adds
that some key raw materials used by
UK manufacturing industries have no
alternative non-EU source.
Certainty over the regulatory landscape
is also important, and a key priority for
CIA is to secure regulatory continuity as
part of the Repeal Bill.
‘For years now UK companies have
complied with European Union
chemicals regulations including REACH
– the regulation for the Registration,
Evaluation, Authorisation and Restriction
of chemicals – and CLP – the regulation
for the Classification, Labelling and
Packaging of chemicals,’ says CIA Chief
Executive, Stephen Elliott.
‘Our industry is highly regulated, and
has to be, in order to give assurance.
Chemical businesses across the UK
will be grateful for any certainty and
continuity that this Bill provides.’
If UK companies are no longer allowed
to register chemicals for export to the
EU under REACH and have to go via
a EU-based representative, the cost of
compliance with the regulations will
increase greatly. The vast majority of
the CIA survey respondents believe
that regulatory continuity is going to
be critical.
The Government’s green paper on
industrial strategy, which was published
in January, was described by CIA as a
‘golden opportunity’ to build on the
work that has already been done by
the Chemistry Growth Partnership
since it was established in 2013. This
strategic collaboration brings together
industry, trade unions and Government
to reinforce the strength of the UK
chemical sector. The hope is that its
work will lay the foundation for a
Sector Deal for the chemical industry.
The sector should also benefit from
some of the additional £2 billion in
research and development (R&D)
investment via the Industry Challenge
Fund that the green paper introduced.
In the absence of domestic fracking
production, INEOS landed its first shale
gas from the US at its Grangemouth
refinery in September, having invested in
a fleet of ships to transport the ethane
across the Atlantic. The Grangemouth
Brexit presents a challenging time for the UK chemical industry
THE PARLIAMENTARY REVIEW
Review of the Year
8 | REVIEW OF THE YEAR
Plastics: Waste, sustainability and manufacturing methods
cracker had been running at below half capacity for the previous three years because of a lack of affordable ethane, and INEOS will recommission the second, mothballed, cracker at the site that has been gathering dust since 2008. The price of US gas remains cheaper than that sourced from Europe.
INEOS also bought the oil and gas business of Denmark’s DONG Energy for a shade over a billion dollars, as well as BP’s Forties pipeline. However, in the long term, bio-based feedstocks will become more important to the chemical industry, and are already starting to make inroads into the personal care and plastics markets. Oil and gas supplies are not finite, and renewable sources, from crops to waste streams, represent a huge opportunity for chemicals manufacturers.
The formation of BioPilots UK in October looks to position the UK as a global leader in biorefining technology development and bio-based product manufacture. The alliance of five centres (Beacon in Wales, York’s Biorenewables Development Centre, the Centre for Process Innovation in Redcar, IBioIC in Scotland and Norwich’s Biorefinery Centre) aims to demonstrate
new bio-based products and processes at a commercially relevant scale, and speed up commercialisation of products from biomass such as plants, algae and waste.
Raw materials are not the only concern regarding process inputs: the chemical industry is, necessarily, a high-energy user, and the cost of electricity is a real worry. ‘The UK is paying anything up to 80% more for its electricity than competitor countries,’ claims CIA’s Elliott. ‘The longer that continues the more it becomes a disincentive for solution-providing foundation industries such as chemicals to invest in the UK.’
CIA believes the abolition of the carbon price support tax and an extension of the energy-intensive industries compensation package to a wider range of businesses would be important steps to ensure the future competitiveness of the industry. ‘Secure and affordable energy is a prerequisite for a stronger manufacturing base which I believe the world’s fifth largest economy must urgently address. It is also integral to the chemical industry’s long term future in the UK and its ability to contribute to an Industrial Strategy that works for all,’ Elliott added.
The UK plastics industry is taking big strides to reduce waste and improve sustainability. ‘This has been a big theme for years,’ says the British Plastics Federation’s Director General, Philip Law.
‘Companies are constantly trying to reduce the amount of material in, for example, a packaging mould, without losing its physical performance, and also trying to reduce energy consumption.’
The industry is doing a lot with its supply chain to minimise the impact
of end-of-life products. There is a measurable reduction in the weight of plastics products and plastics are highly resource efficient, compared with some materials.
‘Plastics recycling has progressed rapidly and it’s not only packaging,’ says Law. ‘For example, well over a million PVC window frames have been recycled in the UK and we are second only to Germany here. The overall plastics packaging recycling rate has now reached 45%. Within that figure,
Increases in the amounts of recyclable plastics are positive indicators of increased sustainability
Just over a year after our decision to
leave the European Union, it is still
very difficult to gauge exactly what
the consequences will be for the
manufacturing industry.
In July, figures reported in The Financial
Times showed that investment in
the UK car industry had fallen to just
£322 million in the first half of 2017,
projecting £644 million for the year.
This is in stark contrast to 2014 when
the automotive sector spent a cool
£2.5 billion on plant, kit, buildings and
training. But commentators, including
the Society for Motor Manufacturers
and Traders, pointed out that auto
sector investment is cyclical and 2014
levels were at the top of the cycle in an
exceptional year.
Jefferson Group, a recruitment agency
specialising in manufacturing and
engineering, counted 200 separate web
news stories from December 2016 to
June 2017 that related to ‘significant’
manufacturing investment; capital
expenditure of more than £1 million, or
a new research centre, training centre
or new manufacturing/distribution park.
While pharma is concerned about
the effects of extracting the UK
pharmaceutical industry from
EU regulation, this did not stop
Brexit’s overall effect on manufacturing
57% of all plastics bottles are recycled
and the bottle recycling collection rate
in Wales has actually reached 75%.’
A barrier to more recycling is the
disharmony of local authorities’
collection policies, where a more
approach standard would promote
economies of scale and transfer of
best practice. The industry is highly
innovative and has recently won
awards for ground-breaking schemes
to recycle hospital face masks and
greetings cards. The BPF organises a
Plastics Industry Recycling Action Plan
to which the plastics industry, brand
owners and retailers have signed up.
For plastic milk bottles, for example,
recycling is very high – over 75% are
successfully recycled.
Technology is driving better products.
MuCell technology is a way of making
products like bottles with a foam
structure that uses 30% less material.
The product is just as strong as a
normal moulded part but uses less
plastic. Several companies are adopting
it in the UK, such as ZoteFoams in
Croydon, leaders in making bottles
for cosmetic products. Its Neocell
product for yoghurt pots, for example,
has achieved up to 26% weight
reduction per unit. The technique
is becoming more popular in the
automotive industry.
Addressing the industry’s main
challenges, in 2018 the BPF will
sponsor an academic study into the
relative efficiency of new types of
polymer and is working to increase
awareness among politicians about the
business opportunities available in the
plastics industry.
The decision to leave the EU will have ramifications for UK manufacturing in the immediate future, and in the long term
9REVIEW OF THE YEAR |
MANUFACTURING & SERVICES
Just over a year after our decision to
leave the European Union, it is still
very difficult to gauge exactly what
the consequences will be for the
manufacturing industry.
In July, figures reported in The Financial
Times showed that investment in
the UK car industry had fallen to just
£322 million in the first half of 2017,
projecting £644 million for the year.
This is in stark contrast to 2014 when
the automotive sector spent a cool
£2.5 billion on plant, kit, buildings and
training. But commentators, including
the Society for Motor Manufacturers
and Traders, pointed out that auto
sector investment is cyclical and 2014
levels were at the top of the cycle in an
exceptional year.
Jefferson Group, a recruitment agency
specialising in manufacturing and
engineering, counted 200 separate web
news stories from December 2016 to
June 2017 that related to ‘significant’
manufacturing investment; capital
expenditure of more than £1 million, or
a new research centre, training centre
or new manufacturing/distribution park.
While pharma is concerned about
the effects of extracting the UK
pharmaceutical industry from
EU regulation, this did not stop
Brexit’s overall effect on manufacturing
57% of all plastics bottles are recycled
and the bottle recycling collection rate
in Wales has actually reached 75%.’
A barrier to more recycling is the
disharmony of local authorities’
collection policies, where a more
approach standard would promote
economies of scale and transfer of
best practice. The industry is highly
innovative and has recently won
awards for ground-breaking schemes
to recycle hospital face masks and
greetings cards. The BPF organises a
Plastics Industry Recycling Action Plan
to which the plastics industry, brand
owners and retailers have signed up.
For plastic milk bottles, for example,
recycling is very high – over 75% are
successfully recycled.
Technology is driving better products.
MuCell technology is a way of making
products like bottles with a foam
structure that uses 30% less material.
The product is just as strong as a
normal moulded part but uses less
plastic. Several companies are adopting
it in the UK, such as ZoteFoams in
Croydon, leaders in making bottles
for cosmetic products. Its Neocell
product for yoghurt pots, for example,
has achieved up to 26% weight
reduction per unit. The technique
is becoming more popular in the
automotive industry.
Addressing the industry’s main
challenges, in 2018 the BPF will
sponsor an academic study into the
relative efficiency of new types of
polymer and is working to increase
awareness among politicians about the
business opportunities available in the
plastics industry.
The decision to leave the EU will have ramifications for UK manufacturing in the immediate future, and in the long term
THE PARLIAMENTARY REVIEW
Review of the Year
10 | REVIEW OF THE YEAR
Investment
GlaxoSmithKline from investing £275 million in its UK manufacturing facilities, and Novo Nordisk is investing £115 million over the next decade on a diabetes research unit in Oxford (see the Pharmaceutical edition).
When industry as heavily invested in the UK as pharma sees a large geopolitical change, it can be unsettling but it clearly has not stopped business in its tracks. And some firms have never been busier, including suppliers of machine tools and moulding machines that serve the huge subcontract manufacturing industry where hundreds of big original equipment manufacturers (OEMs) source thousands of parts.
Credit ratings agency Moody’s said the UK economy could be tipped into recession if Britain fails to land a deal with the European Union. Others are talking up the list of free trade deals we can negotiate with countries from the US to Japan.
Colin Tirel at ARBURG Ltd, a supplier of injection moulding machines in Leamington Spa, says ‘to date, there does not appear to be any negative feeling in the market towards Brexit, quite the opposite with, pleasingly, many instances of work being reshored to the UK. One issue we do see is that of a shortage of technical personnel in the industry. This is something many customers have commented on.’
It has been striking how many big investments have been made in the manufacturing sector since the start of 2017. The net amount of new investment in the sector this year, offset by closures, liquidations and offshoring, is difficult to quantify, but there seems to have been a far higher than average number of factory investment and expansion stories – as well as training and research centre launches and upgrades – in the first half of 2017 than in previous equivalents periods.
A selection of some bigger and more notable investments in manufacturing in 2017 to date are listed below:
» In December 2016 Siemens opened its £310 million turbine blade plant in Hull.
» Announced in October 2016, Spanish automotive supplier Gestamp Tallent began work in May on a new £126 million plant near Cannock. The investment comprises £70 million in new technology and installation and build costs of £56.3 million.
» In March Toyota said it will invest
£240 million to upgrade its car plant
in Burnaston. For future output it said that tariff-free trade with the EU was essential. The company said it would also move to use more locally-sourced components, which carmakers in Britain are focusing on as a way to overcome currency fluctuations and potentially meet new local content rules (Reuters). In July it was awarded planning permission for the expansion and said this would create 90 jobs.
» Airbus UK, and aeroengine maker Rolls-Royce, received a boost when China Aviation Supplies Holding Company signed a general agreement for 140 aircraft, worth up to £18 billion. All the ordered A320 and A350 aircraft’s wings and the A350’s Rolls-Royce Trent XWB engines will be manufactured in Britain.
» International industrials group, Liberty House, completed a £100 million deal to acquire the speciality steels division of Tata Steel UK in May, protecting the jobs of 1,700 existing staff at three major sites at Rotherham, Stocksbridge and Brinsworth in South Yorkshire and smaller sites across the UK.
A multi-million-pound investment deal by Toyota was approved in July
Jobs, pay, work and pensions
It also said it would create around
300 new steel jobs in South Yorkshire
and make multi-million pound
investments to secure the future of
five sites across the North of England
and West Midlands.
» In February supercar maker McLaren
said it will build its supercar chassis
in the Sheffield City region, building
a new £50 million factory, creating
200 jobs.
» Boeing’s first factory in the UK was
also announced in February. The
multinational aircraft maker will build
a £20 million plant to make actuators,
which operate aircraft wing flaps, on
the 737 and 777 airframes.
» In April, Detroit Electric confirmed
a $370 million deal to build electric
sports cars and suburban utility
vehicles (SUVs) in Leamington. More
than 200 new jobs will be created at
Detroit Electric’s factory in Harrison
Way with the launch of the SP:01, a
£100,000 sports car to rival the Tesla.
» Ready meals manufacturer Charlie
Bigham’s secured investment to build
a new factory in a Somerset quarry
that will initially create 100 jobs, with
the plan to increase this to 300 in the
next few years.
» Expanding manufacturing to logistics,
in April work began on the second
phase of £500 million iPort logistics
scheme in Doncaster set to create
many jobs. The total area will
approach 6 million sq ft. Phase 1 of
iPort has already seen 2.34 million sq
ft of space let to Amazon, Fellowes,
CEVA and Lidl.
» In March Costa opens £38 million
roaster in Basildon, Essex to
quadruple production. It can now
roast 45,000 tonnes of coffee a
year (or 24 tonnes a day), up from
the 11,000 tonnes at its previous
Lambeth site. The new site is close
to where the raw coffee arrives at
Tilbury Docks, saving carbon miles.
These big announcements were
supplemented by hundreds of stories
of smaller, but very significant,
investments such as Telford-based
Proto Labs’ €4 million spend on new
machinery to service Europe-wide
demand for rapid prototypes.
Engineering Employers’ Federation’s
(EEF) annual Manufacturing Fact Card
shows that pay within the sector
continues to outpace services and
the whole economy average, being
up 1.9% (2015 vs 2014) or 3%
compared to 2013. Average pay in
the manufacturing sector in 2016/17
is £31,489, in services it is £26,825,
and £27,607 is the average for the
whole economy.
Unite, Britain’s largest manufacturing
union, says that employees in the
private sector over the last two years
have suffered the same downward
pressures on pay as experienced by
those in public services such as the
NHS, where the majority of health
staff have seen their pay in real terms
eroded by 17% since 2010. Cases such
as the recent multi-year pay deal on
behalf of over 2,000 workers employed
at luxury carmaker Bentley are the
exception rather than the norm.
Weak demand in the economy is not
helped by below inflation pay deals
– or no rise at all – as the Consumer
Price Index (CPI) rate of inflation stands
at 2.6% (July 2017). Wages are badly
lagging behind inflation, Unite says,
while Stock Exchange performance,
at recent record highs, suggests
big companies have the necessary
cash reserves.
Unite the union argues that private sector pay for the majority of employees in manufacturing has steadily eroded
11REVIEW OF THE YEAR |
MANUFACTURING & SERVICES
Jobs, pay, work and pensions
It also said it would create around
300 new steel jobs in South Yorkshire
and make multi-million pound
investments to secure the future of
five sites across the North of England
and West Midlands.
» In February supercar maker McLaren
said it will build its supercar chassis
in the Sheffield City region, building
a new £50 million factory, creating
200 jobs.
» Boeing’s first factory in the UK was
also announced in February. The
multinational aircraft maker will build
a £20 million plant to make actuators,
which operate aircraft wing flaps, on
the 737 and 777 airframes.
» In April, Detroit Electric confirmed
a $370 million deal to build electric
sports cars and suburban utility
vehicles (SUVs) in Leamington. More
than 200 new jobs will be created at
Detroit Electric’s factory in Harrison
Way with the launch of the SP:01, a
£100,000 sports car to rival the Tesla.
» Ready meals manufacturer Charlie
Bigham’s secured investment to build
a new factory in a Somerset quarry
that will initially create 100 jobs, with
the plan to increase this to 300 in the
next few years.
» Expanding manufacturing to logistics,
in April work began on the second
phase of £500 million iPort logistics
scheme in Doncaster set to create
many jobs. The total area will
approach 6 million sq ft. Phase 1 of
iPort has already seen 2.34 million sq
ft of space let to Amazon, Fellowes,
CEVA and Lidl.
» In March Costa opens £38 million
roaster in Basildon, Essex to
quadruple production. It can now
roast 45,000 tonnes of coffee a
year (or 24 tonnes a day), up from
the 11,000 tonnes at its previous
Lambeth site. The new site is close
to where the raw coffee arrives at
Tilbury Docks, saving carbon miles.
These big announcements were
supplemented by hundreds of stories
of smaller, but very significant,
investments such as Telford-based
Proto Labs’ €4 million spend on new
machinery to service Europe-wide
demand for rapid prototypes.
Engineering Employers’ Federation’s
(EEF) annual Manufacturing Fact Card
shows that pay within the sector
continues to outpace services and
the whole economy average, being
up 1.9% (2015 vs 2014) or 3%
compared to 2013. Average pay in
the manufacturing sector in 2016/17
is £31,489, in services it is £26,825,
and £27,607 is the average for the
whole economy.
Unite, Britain’s largest manufacturing
union, says that employees in the
private sector over the last two years
have suffered the same downward
pressures on pay as experienced by
those in public services such as the
NHS, where the majority of health
staff have seen their pay in real terms
eroded by 17% since 2010. Cases such
as the recent multi-year pay deal on
behalf of over 2,000 workers employed
at luxury carmaker Bentley are the
exception rather than the norm.
Weak demand in the economy is not
helped by below inflation pay deals
– or no rise at all – as the Consumer
Price Index (CPI) rate of inflation stands
at 2.6% (July 2017). Wages are badly
lagging behind inflation, Unite says,
while Stock Exchange performance,
at recent record highs, suggests
big companies have the necessary
cash reserves.
Unite the union argues that private sector pay for the majority of employees in manufacturing has steadily eroded
THE PARLIAMENTARY REVIEW
Review of the Year
12 | REVIEW OF THE YEAR
According to university admissions
body UCAS there has been a drop
in undergraduate applications for
all degrees from both British and EU
students in 2017. The number of
applications from overseas students
for post-graduate engineering courses
has also fallen in the past year. Partly
in response to university tuition fees of
up to £9,000 per year and sub-optimal
application rates, degree apprenticeships
are a new and growing route through
employment and higher education.
The small number of degree
apprenticeships currently being
delivered is expected to increase
substantially over the next couple
of years, says Henriette Fordham
at the Higher Education Funding
Council for England (HEFCE). Many
higher education providers, including
universities, further education colleges
and private providers, are developing
programmes based upon the increasing
number of degree apprenticeship
standards. Several institutions
have been provided with funding
through the Degree Apprenticeship
Development Fund to develop new
provisions to be delivered from the
academic year 2017/18.
‘While they do not involve a financial
cost for the apprentice, they do
involve working in paid employment
for the majority of the week and, as
a route towards a higher education,
qualification they can be challenging,’
says HEFCE’s Fordham. ‘We expect
them to complement traditional higher
education routes, which will continue
to appeal to potential students, but as
employers look to spend their available
levy funds on opportunities to develop
their existing workforce and recruit
new skilled staff we expect that an
increasing number will consider degree
apprenticeships as one of a variety
of options.’
Engineering degrees and degree apprenticeships
However, the majority of private sector jobs come from small and medium-sized enterprises (SMEs). The Federation of Small Businesses says 60% of all private sector employment in the UK is from SMEs and in manufacturing it is thought to be much higher.
The state pension age was due to increase to 68 between 2044 and 2046. Under new proposals that have to be agreed by parliament, this will move forward to between 2037 and 2039. The Government did not include this proposal in its General Election manifesto.
Unite claimed the increase in the retirement age meant that workers would be paying for failed economic policy under the Conservative
Government. It says raising the state pension retirement age to 68 between 2037 to 2039 will be detrimental to workers, especially if you have a physically-demanding job or are suffering ill-health, and they called for this proposal to be reversed.
Unite Assistant General Secretary for Manufacturing, Tony Burke, said ‘Brexit dominates economic and fiscal policy.
‘As a union, we are seeking a ‘Jobs First’ Brexit where every aspect of the negotiations is set against whether this will create secure and well-paid employment in a country with a strong industrial base. To this end, we are calling on Business Secretary, Greg Clark, to put flesh on the bones of the Government’s industrial strategy.’
Expansion of degree apprenticeships could help close skills gap
13DS SMITH PLASTICS |
MANUFACTURING & SERVICES
MP for Gloucester, Richard Graham visited the Gloucester site in April 2017, to understand more about what we do in the business. Pictured with Iain Hannam (Managing Director)and Lydia Butler (Customer Sustainability Co-Ordinator)
A selection of our products
The plastics division of international packaging business DS Smith has made conscious efforts to drive greater sustainability in its manufacturing output. Its Gloucester
site has been home to a number of efficiency strategies, including the recycling of used materials and making the facility more sustainable.
DS Smith ensures that all of its products are fully made from polypropene and are
always 100 per cent recyclable. Any waste emanating from the production process
is later recycled off on site at a specialised facility. Not content with just recycling
the material however, DS Smith tries and go one step further by bringing back
waste products from its customer base and changing them into new products.
Such efforts not only aid efficiencies but also help the overall image of the sector.
‘Undoubtedly, there remains a lot of negativity surrounding plastics as a material,’
says Lyndsey Loyden-Edwards, UK sales manager for DS Smith. ‘The fact that it
doesn’t biodegrade has played a large part in its reputational problem, but following
the championed circular economy model, materials are put into a continuous loop
and brought back into the manufacturing process to be used again.’
Making our facilities more efficient
This is demonstrated through two examples, says Iain Hannam, Managing Director at
its Gloucester plastic facility. ‘First, we fitted LED lighting across the main Gloucester
factory in 2016,’ he says. ‘Our facility is an old building – with the company having
held a presence there for more than 40 years. As the factory wasn’t purpose
built, it has meant us working under constrained circumstances for a long time.’
FACTS ABOUT DS SMITH PLASTICS
» Offers a selection of converted corrugated plastic extruded products
» Only DS Smiths Plastics extrusion site in the UK
» Exports plastics products to the USA
» Holds ISO 14001 environmental standard
DS Smith Plastics
14 | DS SMITH PLASTICS
THE PARLIAMENTARY REVIEW
Highlighting best practice
The fact it is also a building of a more
mature vintage has inevitably meant
greater energy consumption. This reality
heightens the importance of obtaining
the maximum efficiency levels in the DS
Smith factor, Hannam says.
Second, the company has also
refurbished one of its large warehouses
nearby with the aim of improving
its sustainability and making it as
efficient as possible – a process which
also involved installing LED lighting.
‘As with the Gloucester facility, this
helps with energy saving reductions,’
Hannam says. ‘Aside from materials
and labour costs, energy is the biggest
financial cost for the company today,
a fact reflecting the reality for many
manufacturing companies.’
Another route taken by a company that
takes its sustainability credentials very
seriously was its decision to subscribe
to the government’s Climate Change
Levy, an initiative aimed at reducing
carbon emissions. To date, this decision
to adhere to certain commitments to
ensure the subsidy against the levy
has benefited DS Smith, says Hannam.
‘To date, we’ve achieved the maximum
for a number of years and maintained
this,’ he says of the levy.
The industries we serve
In plastics, a large UK market DS Smith
operates in is graphics, supplying flat
sheets of materials across a variety of
distribution channels. This has resulted
in a lot of prestigious work over the
past decade, notably for the 2012
London Olympics when the company
won signage-related work for some of
the venues.
Another industry where DS Smith has
a healthy presence is construction,
with the company supplying a lot of
protection sheeting both for building
production and marine protection,
most commonly in shipbuilding
work. A famous project where it
leant its expertise in this area was the
construction phase at the Principality
Stadium in Cardiff.
Correx® products in the pharmaceutical supply chain
DS Smith offers a selection of environmently friendly packaging solutions
Upstream flow
Primary packaging suppliers & manufacturers of closing systems and parts.
» One way & multi-trip solutions
» Fibre free
» Protecting & Package products going into Laboratories
» Easily sterilised packaging
» Water and Moisture resistant
Central flow
Between cleanrooms, in factories and laboratories.
» One way & multi-trip solutions
» Fibre free
» Easily sterilised packaging
» Water and Moisture resistant
» Chemically and biologically inert
» Environmentally friendly
Downstream flow
Distribution networks, direct customers and retail.
» One way & multi-trip solutions
» Storage and packaging for retail sale
» Lightweight
» Rigid
PRIMARY SUPPLIER
FACTORY/ LABORATORY
CONTRACT FILLER
CUSTOMER
15DS SMITH PLASTICS |
MANUFACTURING & SERVICES
While the aforementioned projects mostly consist of customers utilising DS Smith flat sheet products, the company has also increasingly looked to convert these material sheets into a useable product for the packaging market. Their end-users by industry are diverse, ranging from automotive to pharmaceutical, with another 20 or so different markets beyond these.
The potential of the automotive and retail sectors
From the Gloucester site, the automotive sector accounts for the majority of the output, mostly through the supplying of transporting packaging for components in the supply chain. In recent years, DS Smith has successfully carried this out in packaging for Jaguar Land Rover when shipping its engine parts to China.
In the last year, it is also the automotive sector where DS Smith Plastics has experienced rapid growth. However, this kind of growth is cyclical, according to Hannam. ‘This falls in line with overall vehicle manufacturing, and as production rates have risen in the past year, so has the opportunities for a company like us.’
Changing customer demands in the warehousing side of the retail sector have also generated new business opportunities. Hannam says: ‘There’s more reliance from retailers in not using cardboard in warehousing but plastics instead. The material lasts longer and of course, would be safer in the event of a fire.’
Investing in equipment
Another area of substantial company investment has been in shop floor equipment, according to Hannam. ‘At each stage of evolution of the machinery we buy, we are able to run faster and achieve higher outputs within the same amount of hours and power consumption,’ he explains.
Equipment investment in an industry such as plastics is a continuous process, Hannam feels, due to the array of new innovations associated with the machinery used by DS Smith. The importance of software updates, including the development of an in-house CRM system, will also ensure the Gloucester operation is well equipped for the future.
Achieving safety excellence
As DS Smith’s plastics division moves forward, Hannam says it will do so by adhering to the highest safety standards – something that is very important to DS Smith as a group. Plans are afoot to achieve another a major safety standard in the form of ISO 45001 by the middle of 2018, adding to its existing ISO 14001 environmental standard.
‘The accreditations gives us a high degree of internal credibility,’ Hannam says. ‘We saw how acquiring the ISO 14001 environmental accreditation got staff thinking about ways of doing things on a different level – and we’d like to replicate this with how they approach safety.’
DS Smith Plastics is fully committed to offering innovative and sustainable solutions to meet the demands of our customer base
“
“
Richard Graham talking to our engineering team in the factory
16 | FARREL
THE PARLIAMENTARY REVIEW
Highlighting best practice
Banbury® Technolab® Internal Mixer
Assembly Shop
Farrel Limited is the leading designer, developer and producer of mixing and compounding machinery for the polymer processing industry. Our company focuses
on the production of the Banbury® Mixer, which celebrated its centennial anniversary in 2016. Highly innovative and beneficial to the tyre industry, the Banbury® mixer produces the compound from which tyres and other products are made. It remains the first choice for a diverse range of applications.
Our History
Farrel’s origins can be traced back to 1900. It began as David Bridge & Sons, a
company that made machines for the rubber industry in Castleton, Rochdale.
We continue to produce our current range of mixers in the same building.
In 2008, Farrel became a part of the HF Group of companies. In turn, this led to
the formation of the HF Mixing Group, created in 2010 together with two of our
former competitors.
Growth & Success
In recent years Farrel has seen substantial growth placing us as the leading
manufacturer of tangential mixing systems for processing tyre compounds. We
have seen progress in the notoriously difficult Asian market and a general increase
in sales worldwide; as a result Farrel is a global player that sells to all of the top
100 tyre manufacturers.
FACTS ABOUT FARREL
» Located in Castleton, Rochdale, Lancashire
» Founded in 1900
» Employs 165 people
» Groundbreaking Banbury® mixer invented in 1916, with production and sales starting in 1918
» Leading designer, developer and producer of mixing and compounding machinery for the polymer processing industry
» Numerous design patents
» Winner of Rochdale business Award 2015
» Sales turnover of £42.0 million in 2016
Farrel
Farrel is a global player that sells to all of the top 100 tyre manfacturers
“ “
17FARREL |
MANUFACTURING & SERVICES
There are a number of factors that have
contributed to our success, including a
fall in production times, increased order
intake, enhanced machine reliability and
the addition of the Banbury BM700N
mixer to our portfolio; currently the
largest tangential mixer on the market.
We have managed to achieve this
growth in a number of ways including:
1. Investment in infrastructure
Investment, development and the
careful optimisation of the factory
have been integral. In 2014 we were
granted funding from the Regional
Growth Fund. With this backing we’ve
been able to invest in state-of-the-art
machinery and robotics technology.
Concentrating on our core competences
of hard surface application and
machining, the investment has given a
leaner manufacturing process which has
drastically reduced production and lead
times. We have continually invested
25% of the company’s overall profit
into capital expenditure each year.
2. Research & Development (R&D)
R&D is an essential part of our business.
We have developed a new series of
Tangential mixer, patented cutting
edge Rotor Technology, cemented our
hard welding competence and overall
process know-how in general.
3. Investing in people
Our growth and success is in direct correlation with the investment into our workforce. The Regional Grant has enabled us to create and safeguard engineering jobs in Rochdale. In turn, this has enabled us to really hone our craft by investing in extensive training for our staff including iMechE membership and CEng accreditation for our engineers.
In 2015 we were presented with a Rochdale Business Award for skills and workforce development in recognition of our Apprentice scheme. This is at the core of our success and makes sure our expertise and know how stay within the business.
4. Continuous Improvement Programme
Alongside capital investment and training, a continuous improvement programme has helped us to simplify a number of processes, effectively reducing assembly times and manufacturing costs.
Exploring Future Growth Channels
The outlook for the rubber mixing industry is very strong and it’s evolving; this applies to the industrial sector as a whole. Farrel has already taken a number of steps to ensure it stays ahead of the curve:
1. A Fourth Industrial Revolution
We are in a Fourth Industrial Revolution; an age of smart manufacturing and digital factories with the intention of improving productivity, shortening product development cycles as efficiently and cost effectively as possible (Industry 4.0 Summit, 2017). Farrel has taken an active approach and championed a move towards this way of working with a number of initiatives such as:
» Remote service concepts
» Online condition monitoring
» Digitised measuring devices
Whilst 83% of UK manufacturers are planning to invest in automation and control systems in the future, only 48% of manufacturers across Europe
In 2015 we were presented with a Rochdale Business Award for skills and workforce development in recognition of our Apprentice scheme
““
Banbury® N-series production size mixer
» K N O W L E D G E T R A N S F E R P A R T N E R S H I P ( K T P ) D U S T S T O P P R O J E C T
A notable R&D undertaking, was the two-year KTP Dust Stop Project, and was supported and part-funded by the Engineering & Physical Sciences Research Council and Innovate UK. During this time Farrel worked with Loughborough University’s School of Mechanical, Electrical and Manufacturing Engineering to design a contact mechanics model which predicts tribological conditions (friction, wear and lubrication) of rotating sealing surfaces within the mixing chamber.
By determining more precisely the lubrication requirements, mixer performance has been improved while reducing the carbon footprint. Aside from increased sales, the project allowed access to technology of strategic importance and once again proved our commitment to pushing boundaries and developing new technologies.
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consider themselves ready for the
future – we like to think we are ahead
of the curve and this will contribute
to our continued future growth
(Industry 4.0 Summit, 2017).
2. Automation Solutions
In keeping with Industry 4.0 we have
seen a significant increase in the sales of
Automation Solutions. To capitalise on
this ever growing market, the HF Mixing
Group set up a dedicated Systems
Business Unit at our headquarters in
Freudenberg, Germany. Automated
Solutions offer big rewards to our
customers; such as a high level of
standardisation with low investment
costs, to the consistent documentation of processes and material flows.
3. Commitment to Innovation
Innovation is at the heart of what we do; and this shows no sign of slowing down in the future. Farrel is committed to pushing new technologies and the UK government tax incentive Patent Box, has enabled us to take full advantage. This initiative has helped UK manufacturers like Farrel remain competitive and stay in the UK.
Conclusion
In addition to continuing to develop
new innovations, Farrel will also look
to consolidate its product line and
build high volume standard products
that will reduce cost and boost
competitiveness. Our growth over the
last five years has been substantial,
and our head count has also increased.
Over the next five years our goal is
to increase the number of mixers
produced annually. Additionally there
is also huge potential in maintenance
work on existing machines. To
support this continued growth
Farrel will continue to invest in our
manufacturing processes and people.
Mixer performance has been improved while reducing the carbon footprint
““
Finished pair of NST™ patented tangential rotors
Automated robotic welding of rotors
19AMARAY |
MANUFACTURING & SERVICES
Jamie Tinsley, Managing Director of Amaray Europe
FACTS ABOUT AMARAY
» 1980s. Diversification into media packaging, creating the globally-adopted DVD and Blu-ray case, becoming global packaging leader and supplier to major Hollywood studios
» 1990s. Diversification into pharma packaging
» 2000s. Operational facilities established in the USA. Diversification into Consumer Goods markets via inspired thinking and creative product design, fully supported by a network of highly efficient plastic injection moulding. BRC, ISO9001:2008, ISO13485, and Sedex approved
Amaray’s factory in Corby. Home of making good things, better.
Amaray is a high-volume, highly-efficient, highly-automated plastic injection moulding company who produce plastic packaging through cost-effective
manufacturing. With a laser-focus on customer satisfaction, Amaray strengthens brand-to-consumer relationships within the personal care, home care, media and food packaging markets.
Amaray began life in 1901 manufacturing lead-based plumbing products and was formally known as Dubois Ltd. However, the advent of plastics in the 1960s saw the first of many changes to the business as they introduced polypropylene injection moulding as their core capability. Relocating from Kings Cross, London to Corby, Northamptonshire in the 1970s, Amaray improved their standing as key manufacturers for leading brands in the DIY and pharmaceutical markets, moulding plastic components and registering the first of over 320 patents.
Customer-focused innovation and manufacturing excellence continue to define Amaray’s success. As one of the largest high-volume producers of plastic components and packaging, Amaray’s competitive advantage continues through innovation, ingenuity and an immense understanding of customer and market desires. Amaray has dominated the media market for over 25 years. The benefit of Amaray’s experience in media is that it has an extensive history of collaborating with reputable global brands, working to understand their needs to provide creative, cost-effective products.
Innovative thinking
With more than 320 patents, innovation remains integral to Amaray’s future and its development of new packaging formats to engage consumers through ease-of-use and functionality continues at a pace. Convenience is a key consideration for consumers;
Amaray
20 | AMARAY
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great packaging that supports varying lifestyles and enhances their experience can make all the difference to a consumer’s decision to repurchase again in the future. Packaging is a communication tool for brands so, making the consumers’ experience with packaging memorable, will bring brand and user closer together. Major Fast-moving consumer goods (FMCG) brands appreciate Amaray’s unique approach to bringing new and innovative ideas to their marketplace.
Amaray’s collaborative culture spills over into the design process. Companies which outsource the design of their rigid packaging sometimes meet challenges from a manufacturing perspective, as designers often prioritise aesthetics over the practicalities of manufacturing. Amaray’s extensive knowledge bridges the gap between design and manufacturing, ensuring that customers achieve the best design, made as efficiently and as cost-effectively as possible.
The understanding of consumer and environmental needs guides Amaray’s transferral of plastic technologies, pioneered in their media products, into new product categories. Plastic’s inherent flexibility, lightness and
strength-to-weight ratio allows Amaray
to design durable and responsible
packaging from the outset, that delivers
benefits to the entire supply chain,
including post-consumer recycling.
Operational excellence
Manufacturing media products in
extremely high volumes inspired
Amaray to aggressively drive
opportunities for operational
efficiency, reduce waste and lower
costs. The business now thrives on this
relentless approach. Beyond design,
the company’s ability to mass produce
high-quality products via injection
moulding sees Amaray regularly
achieve high-performance supplier
ratings with their customers. This, in
addition to operational excellence,
is why Amaray are chosen as the
best provider for mould transfer;
existing tools owned by brands
can be transferred to Amaray and
incorporated into their production
lines. Through naturally streamlined
processes, optimisation and integrated
automation, Amaray deliver cost
reductions via efficiency gains. These
benefits are already being realised
by several global companies within
multiple consumer markets.
Major FMCG brands appreciate Amaray’s unique approach to bring new and innovative ideas to their market place
“
“Dynamic robotic handling systems optimise Amaray’s production performance
High-speed quality checks using computerised optical measurement systems
21AMARAY |
MANUFACTURING & SERVICES
Responsibility
Amaray’s sustainability approach
focuses on minimising usage of
depleting resources, to reduce the
effect on the environment and to
manage waste responsibly. Amaray
help brands meet consumers’
concerns regarding environmental
issues by designing recyclability into
its products. This is evidenced by
their Closed Loop internal recycling
programme where excess inventory
and plastic scrap is re-used to make
alternative products. Historically,
the home entertainment market has
struggled with inventory management
and sales forecasting. Over-estimating
sales whilst retaining high levels
of stock embraces high costs with
financial risk. With the introduction
of a Closed Loop system, the excess
inventory is returned to Amaray to
recycle and re-use in new customer
specified products. Through waste
reduction and material re-use, the
demand for virgin material is limited,
inventory management becomes
more efficient and unnecessary landfill
is avoided.
The plastics industry – the future
The plastics industry is a major player
in UK manufacturing. Its turnover
is £23.5 billion, it has over 6,200
registered companies and employs
approximately 170,000 people
(representing 6.5% of all those
employed in manufacturing within
the UK). The UK is the 4th largest
consumer of plastics in Europe and
the 15th globally, exporting 65%
of home-made products to the
European market. By 2020, the global
plastics industry is expected to be
worth in excess of $650 billion. The
UK is one of the global leaders in
plastics technology with a highly-
reputable status around the world. It
is renowned for innovation in product
design and process development and
is supported by first-rate academic
institutions and government-
supported bodies. However, the
industry faces constant challenges,
which are preventing it from realising
its full potential.
There is a notable shortage of skills
within the industry. The UK has some
of the world’s most skilled engineers
and product designers who have
helped establish our reputation as a
major innovator. To ensure Amaray
maintain their competitiveness they
continue to develop and recruit
technical apprentices whilst focusing
intensely on their people and culture.
After implementing a variety of
engagement initiatives, employees have
become sensitive and conscious of their
contribution to both the company and
its local community. Over the past 18
months, Amaray have been active in
the local community; raising money
for charity through dragon boat racing
and donating time to gardening and
building renovations at a local hospice.
With an engaged workforce committed
to driving performance and making
good things better, Amaray continue
to outperform year-on-year results
across all departments. In addition,
their high-performance manufacturing
facility creates further opportunities for
reshoring production to the UK.
Through naturally streamlined processes, optimisation and integrated automation, Amaray deliver cost reductions via efficiency gains
“
“In-line secondary processes include high-speed product welding
22 | ABRIL INDUSTRIAL WAXES
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Highlighting best practice
Hugh McAulay, Managing Director
Spray atomiser for the production of fine powdered waxes
Having changed ownership two years ago, Abril Industrial Waxes embarked on a new chapter in its seven-decade history. Hugh McAulay, Managing Director of the
Wales-based company, details what new strategies have been implemented since the buyout and how Abril intends to grow.
Sold by its previous owner to powdered metal manufacturer, Höganäs AB, in June 2015, Abril Industrial Waxes was restructured to become a wholly owned subsidiary of the Swedish group. Now amalgamated into Höganäs’ corporate structure, the company retains a degree of independence from its new owner due to the niche areas it serves.
I was brought into the business in January 2016 shortly after the acquisition because of my corporate background, and the following period has been about reshaping the company and putting in place a defined future growth plan. Since then, significant changes have occurred. Having been elected onto the Board of Directors, which included the previous owner for maximum continuity, this collective of executives set about building a three-year strategy for growth.
Use of our products
Whilst our core product is a synthetic amide wax, Abril places significant emphasis on adding value to this base material. Around 50 per cent of our business is generated from producing this type of wax, which we manufacture in Wales, before further processing it in-house to ensure the outcome is niche and special. That is ultimately where the value lies. The other fifty percent of our business is specialised tolling where we produce specific blends and combinations of wax that are both unique, and confidential, to individual customers.
FACTS ABOUT ABRIL INDUSTRIAL WAXES
» Produces materials for manufacturers in plastics, paper, surface coatings, powder metallurgy and adhesives
» Headquartered in Pyle near Bridgend, Wales
» Acquired by Swedish metal power manufacturer Höganäs in June 2015
» Employs 26 members of staff
Abril Industrial Waxes
23ABRIL INDUSTRIAL WAXES |
MANUFACTURING & SERVICES
A company like Höganäs, which has been our largest customer for some time, would typically use our modified amide wax as an external lubricant in the powdered metal technologies that it produces for mostly automotive industry customers. As such, with eventual end users such as Volkswagen Group, General Motors and Toyota, the quality control within the business is extremely high to meet these required standards. Our products also find significant usage in surface coatings and adhesives and sealants as rheology modifiers.
Increasing staff count
Integral to achieving this level of quality is the team at our site in Wales. Today, there are 26 people employed by the company, a number that has grown from the 19 in place at the beginning of 2016. Beforehand, we regularly drew on external staff from agencies, but we decided to step away from this approach as the potential to train and rely on non-contracted staff members was limited. Agency work is temporary and often results in high staff turnovers, denying us of the time required to properly invest in individuals.
To counter this, we put in place a programme to bring the company up to the required employee levels to cover all working shifts. We also took this opportunity to promote from within and create a new structure within the business. Completed this year, from an initial pool of almost 80 candidates, the new staff began in March 2017 and since then we have invested both time and resources into training and developing these individuals, with particular focus on health and safety, and the process and laboratory skills required for the roles. Now functioning in greater numbers, our core of people are multi-skilled – ranging from chemical engineering to chemistry backgrounds
– and this gives us the right level of
expertise to handle complex scenarios
with authority.
Increasing output
The Abril facility has remained largely
unchanged since the acquisition
but, in line with our 3-year plan, we
are currently exploring options for
increased capacity that will begin later
this year. Having been brought in to
double both turnover and production
output in a three-year period, my
team and I are actually setting our
Abril places significant emphasis on adding value
“ “
New investment will see an expansion of bulk raw material storage tanks
24 | ABRIL INDUSTRIAL WAXES
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sights higher than this as we look to secure Abril for the next 10-15 years. Throughout this growth period, we must ensure the growth is spread equally across both parts of the business, amide wax and tolling, and that we develop products and capacity for both our parent company and non-Höganäs customers equally. Abril operates with an explicit obligation from Höganäs not to become solely an internal supplier to them.
Expansion of the business by a minimum of double and up to three times its size by 2019 is a lofty target and this will require substantial investment in equipment. Acquisitions in this area will include provisions of new bulk raw material tanks, along with adding to our spray atomisers. To meet an anticipated surge in material output, Abril’s equipment level will need to be increased in terms of units
by at least 50 per cent in the coming
years, a figure that could potentially
even rise to 100 per cent.
Proudly niche
The material sales themselves show
a continued upward trajectory. We
expect 2017 to show an increase in
product sales of 35-40% over 2015
sales when the business as purchased.
Come the end of 2019, we would like
to meet the target of doubling the
sales when compared to 2015 and,
whilst these growth targets may sound
very ambitious, by industry standards
they are quite modest.
Other companies producing the sorts
of industrial waxes we manufacture are
likely to produce volumes many times
greater than we do. However, these
high-volume producing companies are
not really competitors in our eyes; we
have always been niche and wish to
remain so.
Innovation in new products, new
market developments and emerging
markets also figure in our future. The
company is growing its presence in
the area of rheology modifiers for
the sealants and adhesive markets
with a new range of low temperature
activating products and has set itself
ambitious targets to grow in this
sector. We will look to expand further
into the pharmaceutical and cosmetic
sectors and will look at how we can
use degradable wax beads to replace
plastic micro-beads in facial scrubs.
We are working with an ambitious
car-care products company on a new
method of removing dye-transfer in car
leather seats.
As we expand and take on these
exciting new projects, we will remain
niche, fast moving and efficient and
continue to set ourselves apart by
creating the specialist products that no
one else can, or wishes, to make.
Innovation in new products, new market developments and emerging markets are our future
“
“
Part of the Development Lab at Abril
25RADICI GROUP PERFORMANCE PLASTICS |
MANUFACTURING & SERVICES
John Rae, Managing Director, Radici Plastics UK Ltd
Radici Novacips plant, Chignolo d’Isola, Bergamo, Italy
KEY FACTS ABOUT RADICI GROUP PERFORMANCE
PLASTICS
» Founded: 1941
» HQ: Gandino, near Bergamo, Italy
» Key people: Angelo, Paolo and Maurizio Radici
» Employees: 3,000
» Sales Revenue (2016): €946 million
» Business areas: speciality chemicals, performance plastics and synthetic fibres
» Industrial sectors: automotive, electrical and electronics, clothing, home, construction, sports
» Locations: global presence in 15 countries throughout Europe, North and South America and Asia
» UK representatives: Radici Plastics UK Ltd ([email protected])
Radici Group is one of Europe’s major producers of chemicals and materials based on polyamides, commonly known as nylons. Represented in the UK by Radici Plastics
UK Ltd based in Hampstead, North London, the group is family-owned and headquartered in Bergamo, Italy.
With 3,000 employees and a revenue of €946 million in 2016, the group has
grown to become the third largest polyamide producer in Europe as a result of its
twin core philosophies of innovation and sustainability.
The company produces a wide range of chemical intermediates, polyamide
polymers, engineering plastics and synthetic fibres. These products are the result
of the Group’s outstanding chemical know-how and vertical integration in the
production chain.
The Group’s strategy is a strong focus on innovation, quality, customer satisfaction
and social and environmental sustainability.
Radici Group has developed into a global industrial organisation, creating a
network of 30 production units and business offices located in 15 countries across
the globe. In every country, in every region the Group offers a consistent range of
materials supplied to the same quality according to the its values and ethics.
Key success factor – vertical integration and value chain management
Radici Group’s major strength and distinctive feature is its vertically-integrated
polyamide production chain. The Group has the ability to produce polyamides starting
Radici Group Performance Plastics
26 | RADICI GROUP PERFORMANCE PLASTICS
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from very basic chemicals, such as
ammonia and phenol, and controls
every process and operation to produce
a broad portfolio of monomers,
polymers, engineering plastics and
synthetic fibres. This means Radici can
supply material at every stage of the
value chain to the industries it serves.
The competitiveness of the group has
been assured by ongoing investments
into research and development (R&D)
and production technology.
From this base the company focuses
its strategy on innovation and
sustainability to meet the ongoing
needs of its stakeholders.
Innovation
This covers the development of new
products with enhanced performance
and features such as:
» Elevated temperature resistance to
meet the needs of, for example, the
automotive industry, where smaller,
more powerful engines generate
higher temperatures
» Improved chemical resistance
» High-strength materials for structural
applications to replace metal and
reduce the weight of components
» Bio-based materials with reduced
environmental impact.
In addition to product development, Radici leads the industry in its innovative attitude to social and environmental sustainability.
Sustainability, defined as ‘the ability to meet the needs of the present, without compromising the ability of future generations to meet their own needs’, is at the core of all Radici operations.
The company monitors, records and publishes indicators according to the Global Reporting Initiative model.1
Radici Group has documented sustainability along the entire production chain thanks to the skills developed in the assessment of the environmental impact of products and processes with an Environmental Product Declaration (EPD) certified methodology.
Working through the Sweden-based International EPD® System, the company has co-operated to define internationally accepted Product Category Rules (PCRs), a reference for any company in the industry that wants to measure the environmental impact of its products.
Radici Group was the first company to propose the concept of a production chain PCR and has modified its production technology to develop a portfolio of materials with reduced
$34 million worth of investments made during the 2011–2015 period to sustain the competitiveness of group companies
““
“
» Manufactured using biopolymers obtained from renewable sources
» Manufactured using clean energy
» Solution-dyed materials saving water and energy
» Manufactured using recycled raw materials
Radici Group production routes with reduced environmental impact
From left to right: Paolo, Angelo and Maurizio Radici, Radici Group shareholders
1 http://www.radicigroup.com/en/documentation/corporate/report
27RADICI GROUP PERFORMANCE PLASTICS |
MANUFACTURING & SERVICES
environmental impact as shown opposite.
In the three years from 2013 to 2015
Radici has invested €8.8 million to
promote sustainability. Some of the
results are shown below.
» 14.3% reduction in the total
consumption of primary energy
» 4.2% increase in the amount of
renewable energy used
» 21.6% reduction in total greenhouse
gas emissions
» 60.5% reduction in emissions of
other pollutants
» 64% reduction in use of water
through increased recycling
» Continuous improvement in quality
of waste water
– 55% reduction in chemical oxygen
demand
– 22% reduction in total nitrogen
content
– 56% reduction in total metal
content
» Continuous investment in people,
23% increase in hours of training
per employee.
Today, Radici Group is one of very few
on the market which control its entire
productive process.
This control, from the polymer
chemistry to the production of
synthetic fibres or engineering
plastics, results in process streamlining
and improvement of product
performance. This is known as the
‘short supply chain’, with reduced
environmental impact, thanks in part
to the recycling of materials.
Radici Group embraced the philosophy
of a circular economy as far back as
the late 1980s and, now that the
European Union is on the front line
in promoting this business approach,
we can affirm that Radici Group is the
ideal upstream supplier for a market
oriented towards eco-design, thinking
increasingly about materials in terms of
their post-consumer life, guaranteeing
at the same time optimal performance
and minimal environmental impact.
The challenge our Group faces relates
to the complete recyclability of
synthetic fibres.
The environmental strategy of Radici
Group, supported by know-how
acquired over 75 years with its vertical
integration of the supply chain, has
the objective of ensuring that all
textile sector products are recycled
mechanically, becoming a new
plastic material suitable for technical
or industrial use. Radici Group has
for some time been working with
certain customers in the definition of
formulations which make the finished
item recyclable and reusable for the
manufacture of other products.
Today, the real challenge for large
companies – therefore our challenge –
is making available innovative materials
and new technological solutions
filled with new significance, tied to
sustainable development. A 360°
sustainable business.
The Radici Group way to a circular economy
» I N D U S T R I E S S U P P L I E D B Y R A D I C I G R O U P
» Automotive
» Electrical and Electronic
» Consumer goods
» Clothing
» Furnishings
» Construction
» Household appliances
» Sport
28 | UNION COLOURS
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Highlighting best practice
Pigment powder concentrate as produced by Union Colours
Phillip Myles, General Manager, pictured second right in the pigment development laboratory
Union Colours is the international technical marketing arm of Longyu Pigments & Chemicals Corporation, the largest producer of organic pigments in China. The tie up was
a proposal to take advantage of the UK team’s international technical marketing capabilities, along with the financial and manufacturing strength of a big Chinese corporation.
Following their launch in 2004 they targeted the largest pigment users in inks,
plastics and paints across Europe, with a special focus on serving regulatory
demanding applications. Their market positioning combined technical service
capabilities more typical of the very large European Pigment manufacturers, with a
flexibility more typical of medium sized enterprises.
Globalisation
With their products and services receiving strong technical acceptance by the
European market, in 2010 the company decided to expand globally. Strengthened
by their established brand and the brand of their international clients, globalisation
started rapidly. In 2017 Union colours reached a planned milestone, 50% of their
sales are now outside of Europe.
Union Colours can deliver to any sea port in the world. They have pan-Europe
distribution from their warehouse in Denmark, they hold a bonded warehouse in
Brazil serving Latin America; they have stocking facilities in South Africa for Africa;
they have an office in Mumbai for India and for more difficult to reach markets
they engage a technical distributor sales network.
FACTS ABOUT UNION COLOURS
» A Global Technical Producer of Organic Colour Pigments
» Sales to 46 Countries Worldwide
» Holding 3.5% Market Share in Europe, and 10%+ in Chosen Markets
» International Technical Centre in Stockport, UK
» Supporting Technical Centres in India, China and South Africa
» Strategic Supplier to the World’s Largest Pigment Using Multi-national Companies
» Special Capabilities in Regulatory Controlled Applications
» Financed by the Largest Pigment Producer in China
Union Colours
29UNION COLOURS |
MANUFACTURING & SERVICES
The company found that although technology trends differ across regions, on the whole clients have the same requirements from a pigment producer, a broad portfolio of products that perform well, with consistent quality at an affordable price.
Technologies
Organic colours are made by synthesising various oil derived chemicals. Modern versions are coated during synthesis with speciality chemicals that enhance the product’s performance in application.
Union Colours employ some of the finest pigment chemists in the world: as a result their clients benefit from advanced technical possibilities. It is Union Colours experience in product design and regulatory affairs that gives their clients the confidence to work with them.
Working closely, such as sharing laboratories, is what stimulates innovation and benefits the partners, the chemists’ study how the pigments perform in the client’s application then re-engineer them with improvements.
The pigment formulations and processing know-hows represent the intellectual property held by Union Colours: alongside people, their technologies are the company’s key assets.
Non-commodity product focus
Commodity applications for pigments include publication inks, a market sector that has declined greatly by the paradigm of magazine and newspaper readers migrating online.
Meanwhile some non-commodity sectors are offering good growth prospects, such as highly technical sectors like the colouration of plastics and inks for food packaging and inks for printing on personal care products and textiles with possible skin contact.
Pigment powder after synthesis
These segments are tightly controlled by regulations limiting the negative elements found in organic chemistries that are considered detrimental to human health or the environment. Sales volumes change
non-commodity and commodity
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Union Colours has had a number of products directly approved for use by large FMCG producers based on their product’s cleanliness.
Few companies can service these sectors successfully, and Union Colours is determined to be at the forefront by continuing to engineer cleanliness into their products to meet the future ever tightening specifications.
Manufacturing in South Africa
In addition to their Chinese made product range, in 2015 the company acquired the pigment manufacturing assets of the only pigment producer in Africa. Since its acquisition the focus of their Johannesburg location has been to manufacture pigments for these highly technical sectors, a strategy that has been met with considerable success.
As part of a continued expansion plan, a second much larger pigment making facility will be built in Durban South Africa in 2017. This new facility will be the first pigment plant built outside of Asia in decades, and the first to have a special focus towards producing cleaner pigments.
A future sector leader
Union Colours has shown exceptional growth in regulatory demanding applications; they are already
recognised by their sizable market share and rate of expansion into these sectors.
Together Union Colours and their clients are building technically leading products in areas normally out of reach for most Asian commodity producers.
The company could not grow so fast without the commitment and capabilities of their employees. Their engagement is high, as the company fosters a warm, team-orientated, client-focussed culture, along with an underlying aggression to build market share.
Our new African plant is the first volume making facility built outside of Asia in over 3 decades
““
Purpose built laboratories for pigment development.
Union Colours Product in Application
One of the iconic visions of 2014 was the sea of poppies spreading out of the Tower of London. Commemorating the centenary of the outbreak of WWI the 888246 ceramic poppies had been coated in a red pigment developed by Union Colours UK, manufactured by Union Colours South Africa. Photo by © The Land / Wikipedia
31STORT CHEMICALS |
MANUFACTURING & SERVICES
Stort Chemicals stand at Surfex 2016, NEC Birmingham. This is a key showcase for the UK coatings industry
The family management team: Ken Gilkes, Emma Marchant, Marguerite Gilkes, Matthew Sanderson and Richard Gilkes
Ken and Marguerite Gilkes founded Stort Chemicals in Bishop’s Stortford, close to the River Stort in 1981. Ken had spent all his working life in the chemical cndustry. The company was
set up in their house – this was quite a challenge for Marguerite, with three school-age children to look after and also carrying out all the back office duties of a start-up chemical distributor.
After graduation in chemistry from the University of Birmingham in 1961, Ken had
worked in a variety of multinational companies, such as Cellon, part of Courtaulds
Chemical, Hadfields Paints, part of the Bestobell Group, British Resin Products, part
of BP Chemicals and, from 1970–1980, with the Berger Group, part of the German
giant Hoechst, which at that time was the largest chemical company in the world.
Most of the time was spent on various aspects of the development, marketing and
sales of synthetic resins and polymers for the coatings and allied products industry –
one of the largest segments in the chemical industry overall.
This eventually led to a place on the Board of Berger Chemicals, in the North East
of England. Then, in 1980–82 came the largest and strongest recession to affect
UK manufacturing since the end of the Second World War. In fact, this offered
Ken and Marguerite the opportunity to return south from Newcastle to Bishops
Stortford and to take their destiny into their own hands.
Stort Chemicals early years
The technical knowledge built up over the 20 years prior to 1980, coupled with the
strong friendships built up over that period, proved crucial to the success.
FACTS ABOUT STORT CHEMICALS
» Headquarters in Bishop’s Stortford
» Employing 18 people, and responsible for our core business of speciality chemicals distribution
» Employing 24 people in our joint venture, StortEskens in Warrington, responsible for our paint machinery business
» Founded in 1981
» Turnover 2016: £9 million
» Very close association with our principals – large manufacturers of speciality chemicals, many who have been our partners for 25 or more years
Stort Chemicals
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The early years were spent visiting customers throughout the UK, persuading them to buy specialised products for the coatings and adhesives markets. These were manufactured by Wacker Chemicals and Henkel Chemicals – without whose support in the early years Stort would not have survived. Both the Wacker and Henkel contacts had come from the Hoechst connections. Such contacts are so vital for all start-up companies.
We continue to sell a large range of speciality chemicals from German manufacturers, including Wacker, who are still one of our biggest principals today, after 36 years!
Continued growth
In 1986, Stort invested in small offices in Bishop’s Stortford. In 1988, Henkel Chemicals offered us the UK distributorship for their range of Aroma Chemicals – widely used in the production of fragrance compounds for perfumery. This took Stort into a brand-new market – the fragrance and flavour (F&F) industry. Another major segment in the overall chemicals industry – less technical than coatings but extremely rewarding. F&F is a creative industry, with perfumers deciding which new products launched by the large producers of aroma chemicals will be successful – not the manufacturers.
1995 – Stort becomes a true family business
1995 was an important year for Stort, when Richard, son of the founders, after completing his degree, followed by four years at Barclays Bank, and an MBA from Cranfield, joined the business. His financial acumen, coupled with his IT skills, rapidly ensured our growth was profitable. If a business like Stort, by now stable in terms of turnover, is to survive and prosper long term, its financial health becomes critical and Richard has ensured this. Our investment in computer
technology, both hardware and software, has been consistently high and has allowed us to expand with our bank’s full backing, particularly as they believe our figures!
2000s – further expansion and diversification
Ken’s 60th birthday was celebrated by moving up to the Executive Chairman role, with Richard moving to Managing Director.
From Ground Zero in 1981, turnover was now £3 million, with a high-gross profit, reflecting our chosen area of speciality chemicals rather than the much lower-yielding commodity chemicals.
In 2001 Emma, daughter of the founders, with a degree from Manchester, joined as Director
of Flavours and Fragrances. Her enthusiasm and selling ability has helped grow the F&F division from a steady £1 million turnover throughout the 1990s, to a now stable turnover of £2 million+ over the past three years.
In 2006, we also moved into large new offices on the banks of the River Stort, giving us room for further expansion. These became even more necessary when we set up a subsidiary in 2005 to handle the sales and servicing of paint tinting and mixing machines
Any successful distributor must always remember Customer is King
“ “Emma Marchant, daughter of the founders, assessing new developments from one of our fragrance suppliers
We are part of the total UK chemical distribution market. In 2015, this sector was worth £4.5 billion (€5.4 billion) to the UK. The small and medium-sized enterprise (SME) segment of which we are part concentrates on the speciality chemical side of the market, and represents approximately one third of the total market, i.e. £1.5 billion (€1.8 billion).
33STORT CHEMICALS |
MANUFACTURING & SERVICES
using colourants from a new principal who had chosen Stort Chemicals to represent them: CPS Color BV.
Three years later we sold 50% of
the business to a Dutch partner and
StortEskens Ltd was born. It is now run
out of a custom-equipped warehouse
and workshop in Warrington and
employs 25 people, including 11 fully-
trained and equipped field engineers.
Our excellent relationship with some
of the largest paint companies and
DIY stores in the country has seen the
turnover grow to £2.5 million.
People
While lip-service is often paid to the
importance of employing the right
people, in a sales and service company,
the largest item of expenditure is
investment in people.
Stort believes this passionately and, in
recent years, made a strategic decision
to employ several young graduates and
train these initially as sales office staff
with the intention that they will later
become external sales managers capable
of promoting our products to our
customers in a correct technical manner.
In fact, all of our recent technical
recruits must have a graduate
qualification in chemistry or a similar
discipline, so that they will be able
to introduce our range of products
to our customers in a professional
way. This approach is expensive and
time consuming, but we believe our
customers appreciate this and our
investment in such staff is already
paying off.
As a measure of my personal gratitude
to the University of Birmingham for
the excellence of my own graduate
course, I have given them a bursary
to fund undergraduates in the School
of Chemistry.
Alongside our in-house training, as
we operate in a highly-technical and
regulated industry, our principals will
always give specific product training
in their well-equipped laboratories –
usually overseas – again expensive but
a necessary cost.
We have also ensured health and
safety plays a major part in the
training of all our staff – this must be
best practice in an industry handling
so many different chemicals. This
is reinforced by our long-standing
membership of the Chemical Business
Association (CBA), the UK’s key body
for the chemicals supply chain. Signing
up to responsible care is a pre-requisite
of membership.
A very recent recruit heralds the next
stage of the company’s growth. The
eldest grandson of the founders,
Matthew, who graduated from
Macquarie University in Sydney 18
months ago and has now returned to the
UK, recently joined Stort as Marketing
and Business Development Manager,
with the particular remit to investigate
ways we can best communicate our
products to our customers in a rapidly-
changing market place.
Stort Chemicals is proud to become a
third-generation company.
Stort Eskens’ UK Technical and Training Centre – Warrington
» T H E F U T U R E
Our core chemical distribution business plus our JV StortEskens Ltd has now reached the point where we are confident that our Group target of £10 million of profitable turnover in 2018 will be met.
This is due in large part to the dedication, hard work and expertise of so many of our staff over so many years.
34 | SCIENTIFIC MANAGEMENT INTERNATIONAL
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Our head office and factory in Andover
Think of the harshest environment on the planet – that’s Scientific Management International’s backyard where their moulding routinely operates. Designing,
manufacturing and installing pressure moulded cable harnesses for the most hostile of environments on Earth – regularly including through submarine hull installations and on the ocean floor. Scientific Management International are the only company worldwide to hold continuous Capability Approval from the Ministry of Defence for over 20 years. This is illustrated by having had over 10,000 installations with zero leaks to date, and will have precisely zero leaks in the future.
Essentially, cable harnesses and connectors are the coverings that secure the wires and fibre optics transmitting signals or electric power in a variety of industrial, commercial, civil and military contexts. Clearly, in hostile environments involving extreme temperatures, wet and high-pressure conditions below the surface – be that on the hull of a ship or the seabed – this requires advanced technology and expert installation. In this case also strengthened by internal deep cycle testing, product x-ray procedures and constant and total quality control.
Scientific Management International is a privately held company based in Andover, Hampshire supplying hostile environment cable harnesses and connectors to the marine, aerospace, alternative energy and transport industries – including Britain’s own nuclear fleet for over 20 years. Professionalism is the difference between life and death, where right first time every time and guaranteed 10,000 installation zero leak performance is essential, providing solutions to the highest technical challenges in the sector.
FACTS ABOUT SCIENTIFIC MANAGEMENT INTERNATIONAL
» Formed 1992
» Designer & manufacturer of Pressure Moulded cable systems for hostile environments
» Develops products in accordance with UK Defence Standards – 20 years uninterrupted
» SME operating as a prime contractor to UK MOD and Tier 1 Defence companies
» Operating in Marine, Aerospace & Renewables markets
» Based in Andover, Hampshire with offices in Perth, Australia & Paris, France
» ‘Right first time, every time’ – ‘Fit & forget’ technology
» www.smi.group
Scientific Management International
35SCIENTIFIC MANAGEMENT INTERNATIONAL |
MANUFACTURING & SERVICES
Why it pays to get it right first time
The importance of getting things right first time cannot be overstated. Unfortunately, too many suppliers and customers alike are seduced by lower initial costs into compromising on reliability, resulting in the need for rectification at some stage down the line. This can involve costs often many times what it would have taken to do the job properly in the first place.
In contrast, Scientific Management International’s approach is to work closely with customers from the very early stages of a project bringing over 25 years expertise and experience to bear, ensuring installations are right first time, fit and forget – with zero leaks. This does not always make them more expensive than their rivals, even in terms of upfront costs. Sometimes tailoring an installation to its purpose from the start means developing a more graceful engineering solution, resulting in lower costs. This was found recently with PlastEthUrm mouldings which can take fibre optics around a
90 degree bend and so can fix issues
with connectivity in confined spaces.
A culture of excellence and innovation
Scientific Management International are
committed to technological excellence,
which underlines their heritage not
only as a one hundred percent reliable
supplier, but also as an international
industry leader having offices in UK,
France & Australia. Customers therefore
have confidence in everything they
do, and that includes looking forward
and developing technology in order to
solve the problems of the future.
Innovation is woven into the culture
of the business at every level, along
with a focus on rigorous accreditation.
The certificates held include the ISO
9001:2008 quality management system,
approval for the manufacture of 1st Level
pressure glands from the Ministry of
Defence, along with, as mentioned
above, 20 years continuous capability
approval for the manufacture of pressure
hull and equipment glands which is a
unique achievement worldwide.
Right first time, every time, fit and forget Glen Richardson, Chief Technical Officer, Scientific Management International Ltd
“ “
SlipstreaM connector moulding
36 | SCIENTIFIC MANAGEMENT INTERNATIONAL
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Some recent successes
Interesting projects from the past
few years include the first tidal
installation for SeaGen (Marine Current
Turbines) replacing another supplier’s
failed harnesses, and supplying
export cable terminations for Tidal
Energy’s Deltastream installation in
Pembrokeshire, with low and medium
voltage and fibre optic connectors.
The faultless reputation within the
industry is well illustrated by the
fact that they were a supplier to the
recently commissioned Open Hydro
2MW Tidal turbine at Cape Sharp
in the Bay of Fundy, which has just
started producing power.
The most successful projects are those that involve collaborating with other innovators, and making an impact on the industry as a whole, bringing 25 plus years experience to good use. This was certainly the case when commissioned
by the Royal Navy to help develop a solution to reliability issues with a motor used in submarines. The R&D team redesigned the relevant part in a way that resolved the problem and saved the Navy budget, and this solution was then applied across the fleet.
In order to continue to grow they have to ensure they can recruit staff with the right skills to maintain depth as well as breadth of knowledge – excelling in both how it’s always been done and how it could be done now and developing that process. This is more difficult for the manufacturing disciplines than at the technology and design professional level, and has led to growth of the apprentice training programme in order to secure high growth plans. Apprentices are recruited each year and currently have 5 at various stages of development. This has a major benefit in that apprentices develop within a culture of total reliability – or as they say, fit and forget.
Our excellence in the UK has led to ongoing expansion overseas Martin Stillman-Jones, Chairman
“ “
‘ A L E G A C Y O F I N N O V A T I O N
The first submarine pressure hull glands were developed by Submarine Cables in Erith, Kent, during the 1950s, but the associated technology evolved considerably in the ensuing decades.
For a long time, it was felt that selecting material for cable harnessing involved a compromise between electrical performance and abrasion resistance; different materials had different advantages, and disadvantages. Eventually, it was Scientific Management International that developed a technology combining the best of both worlds, leading to extended life for cable harnesses.
Keith Wells, CEO of Scientific Management International says ‘The first ‘PlastEthUrm’ technology was introduced into another NATO country’s submarines five years ago and to date six boats have been supplied, with three launched and in service. As ever there has been one hundred percent fit and forget performance.’
Another innovation has been the SlipstreaM connector moulding, which combines compact size with a 90 degree bend radius. This enables the efficient and reliable transfer of power and data in wave and tidal installations even where there is restricted space or where low resistance to tidal movements is a consideration.
When mated with PlastEthUrm, SlipstreaM enables Scientific Management International to provide lifetime warranties for cable mouldings and harnesses.
Pressure hull gland
37RJG TECHNOLOGIES |
MANUFACTURING & SERVICES
Richard Brown, Managing Director
Training Facility
The formation of RJG Technologies in 2015 brought together two world-recognised experts in the field of plastics technology, Rod Groleau and John Goff, who
had separately pioneered an approach for injection moulding using scientific principles in the USA and Britain. This approach revolutionised the plastics industry and has made RJG an international leader providing training, consultancy, and technological know-how for those using plastics in their manufacturing process… whether it’s for medical equipment, the pharmaceutical sector, or supply to the automotive market.
Located in Peterborough, Cambridgeshire, RJG Technologies is now part of RJG, Inc.,
a privately-owned family business, and was formed when the parent company
acquired G&A Moulding Technology. Providing progressive, structured, and relevant
training, RJG delivers a range of tailored courses that address the current skills
shortages seen within the plastics industry. Following a prescribed route (Figure 1)
can lead to the prestigious Master Molder® qualification. This provides the recipients
with the knowledge and expertise to apply best practices to drive quality and value
to the products produced, providing a competitive edge for their organisation.
Making the changes
The immediate impact was the speed of decision making, empowering a change in
the direction of the business to provide new services as part of the group. The focus
was to invest in the infrastructure and the people to improve the business. Investment
was made in staff training to add the additional skills and knowledge required to
FACTS ABOUT RJG TECHNOLOGIES
» Leading provider of training and consultancy in the Plastic Processing Industry
» Trainers and Consultants with a wealth of knowledge and experience from within the Plastics Industry
» Winner of Plastic Industry Awards 2015 and finalist 2013 and 2014
» Established reputation for training courses that meet the industry needs
» Team of 11 employees in the UK with 140 worldwide
» Headquarters in Traverse City, USA with facilities in Mexico, France, Germany, UK, Italy, Singapore, China and South Korea.
RJG Technologies
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support the growing business. This ensured we had the ability to deliver enhanced training courses that met the needs of the industry at the time of an acute skill shortage.
In the consultancy area of the business, we developed our TZERO® consultation initiative. This guides our clients through logical steps to develop a plastic component to get it to market right first time. Previous successes have encouraged us to push the boundaries of what is possible for every client and given us confidence to be bolder in our approach to the challenges we face.
Development of a clear vision of the service we offer crystallised our direction, providing the team impetus to deliver it. Investing in our staff has been the best thing we’ve done over the last year in order to grow the business and make a difference to everyone’s work-life balance.
The team
Our team has expertise in all elements of converting plastic pellets into quality products. Through years of industry experience, our team has gained a deep understanding of how things work on the shop floor. This knowledge has helped us shape our training and consultancy services around issues that injection moulders are facing on a daily basis.
For a company with a small number of employees, we have an extraordinarily broad mix of skills to meet our customers’ needs. At RJG, everyone is encouraged to provide input – creative thinking is a natural part of the development process. We recognise that what we do has to be enjoyable to provide job satisfaction as well as financially rewarding for the business.
Our core values and purpose
We have developed a three-year strategy that narrows our focus in order to help us be as successful as possible. Our core values are centred on going the extra mile to provide our customers with training and consultancy that exceeds their needs – something they appreciate. They value our approach to provide honesty, accuracy, efficiency, and consistency in everything we do. We are always looking to develop and improve, to ensure we are the best we can be – as people, as a team, and as a company.
Our purpose is to deliver high quality injection moulding training, consultancy, and process monitoring equipment that surpasses the expectations of our customers in the medical, pharmaceutical, and automotive sectors. Our mission: to get RJG recognised as a global leader through market awareness, innovative product development, and consideration to the environments we work in.
The foundation of our three-year strategy is:
» To develop and deliver high quality training
» To provide consistent consultancy support on every project
» To work closely with every customer to identify problems and develop strategies for permanent solutions that guarantee the quality of plastic parts
» To develop new products that meet the demanding aims of our customers in the plastic industry.
RJG’s training and consultancy service is viewed as a long term solution to the skills gap in the plastics industry
““
Training classroom
Master Molder® II
Master Molder® I
Systematic Moulding
Injection Moulding Essentials
Maths for Moulders
Figure 1
39RJG TECHNOLOGIES |
MANUFACTURING & SERVICES
Two key factors in the success of this
strategy are to invest in the training
of our team and to communicate the
changing demands of our market for
the services we offer.
New products
Although our current products
exceed expectations, we have not
been complacent. Our Research and
Development team have focussed
on the development of new and
innovative products that will
differentiate us from our competitors.
The approach has been simple:
» Work as closely as possible to the
end-user to meet their future needs.
» Ensure we have a clear understanding
of the end-users’ requirements by
listening to the Voice of the Customer.
» Don’t assume the conventional
and more traditional product is the
most appropriate one, but develop
a solution that meets the needs and
demands of our customers.
» Achieve the most cost effective
solution while also achieving good
financial returns.
The Hub™
The Hub was developed to enable
injection moulding plant managers to
monitor their entire plant floor from
a single remote access point via a
web browser. The aim of The Hub is
to increase the efficiency of a mould
shop, as all the data will be available at
one central point, negating the need
to spend time and energy continuously
walking the shop floor. It will show
how all machines are performing and
allow quick decision making to prioritise
the specific areas that need attention.
This is an exciting development for the
company and the industry.
The CoPilot™
The CoPilot, as its name suggests, is a
system to support, monitor, visualize,
and record the status of the injection
moulding process. The CoPilot is
designed to guide the moulding
technician to manage and maintain
the moulding process. The product
functions as a notification system, a
communication tool, and a coach – it
provides a simple and practical guide
to aid moulding technicians of all
experience levels produce quality parts
within process. The CoPilot can also be
used as a training tool to teach staff
of all skill levels how to reinstate and
manage a moulding process.
The future
With the present-day skill shortages,
we believe that it is important for
employers to invest in their employees’
skills and develop apprentices. In
2017/18, we believe that further
growth will be achieved with the
introduction of two new products:
The Hub and CoPilot. With these new
products and our strong training ethos,
we are well placed to meet the current
and future needs of our industry.
These are all exciting developments
for us, and we believe we are well
positioned to see even further growth
in the future.
RJG is an internationally recognised centre of excellence in the field of polymer training and consultancy with an unrivalled reputation in the plastics sector
“
“Hands on Training Experience
» C O M P A N Y A C C R E D I T A T I O N S
» PAAV\Q-SET accredited centre
» Cogent Skills Partner
» Member of British Plastics Federation.
» ISO 9001:2015
40 | APPLIED COATING TECHNOLOGIES (ACT)
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Dr Yasin Zaka, Managing Director and Christine Hancock, Commercial Director
ACT’s third robotic line, commissioned in 2015
Applied Coating Technologies (ACT) is the UK’s premier industrial and automotive coating company with manufacturing sites based in the West Midlands. For more
than 30 years the management team have developed innovative coating solutions and invested in state-of-the-art application technologies. The company now has three autonomous business units focused on providing customer a world class service and with one of the strongest research and development (R&D) teams in the industry continues to develop new coating technologies.
After obtaining his PhD from Aston University Dr Y. Zaka started his career as a coatings technologist at the R&D centre of Inco Engineered Products. There he developed coatings that could protect electronic equipment from radio frequency interference (RFI). Keen to commercialise his innovative coating application and develop a business Dr Zaka went back to Aston University Business School and studied for a Masters Degree in Business Management.
In 2000 Dr Zaka and his colleague Christine Hancock formed their own company, Applied Coating Technologies. From the onset they believed that to grow their business they needed to invest in the latest technology, innovate and develop new products and markets and to focus on customer service. This formula has served them well and the company has grown steadily from employing just two people in 2000 to over 90 in 2016. Revenue was £8 million in 2016 and is forecast to exceed £10 million by 2019.
ACT started life specialising in applying conductive coatings to provide protection against interference caused by electromagnetic waves. Electronic products housed
FACTS ABOUT ACT
» Established in 2000 by Dr Yasin Zaka and Christine Hancock
» Specialises in applying functional and decorative coatings, using manual and robotic coating technologies
» Currently operates from two sites in Oldbury, West Midlands with plans to open a third facility in 2018
» Employs 90 people with a turnover of £8 million
» Focuses on core values: innovation, investment in latest technology and world class customer service, to achieve growth
Applied Coating Technologies (ACT)
41APPLIED COATING TECHNOLOGIES (ACT) |
MANUFACTURING & SERVICES
in plastic enclosures are particularly
susceptible, as plastics are non-
conductive and do not offer any
resistance to electromagnetic (EM)
waves generated by mobile phones
and other electronic equipment.
The internal surfaces of plastic mouldings
used in mobile phones, computers,
medical and defence equipment are
now routinely coated with specially
formulated conductive paints to provide
protection against EM/RFI.
Over the years, customers requested
the company apply decorative/cosmetic
coatings to the exterior surfaces of their
mouldings. The appeal and value of
an injection moulding can be greatly
enhanced by applying a cosmetic finish.
This led to the formation of the second
business unit. ACT has developed
an extensive knowledge portfolio in
applying metallic, pearlescent, high-
gloss and soft-feel paints to coatings by
manual spray application.
This division now services over
100 customers including many
household names such as Whirlpool/
Indesit, Kholer Mira, Electrolux,
Rentokil Initial, BMW and Bentley.
Christine Hancock is the Commercial
Director and responsible for Marketing
and customer support. She commented
that the most satisfying aspect of her
job in recent years has been the fact
that over 30% of all new projects
won by the business have been where
companies have repatriated coating
work back to the UK from the Far East.
Having worked successfully for some
of the premier automotive marques
such as Bentley, Lotus and McLaren the
company ventured into high volume
automotive supply by setting up its
Automotive Coatings Division in 2005.
As well as traditional coating
technologies, the Automotive division
has three robotic spray lines capable of
coating over 10,000 parts per day.
ACT processes are flexible and can
meet the demands of the automotive
sector for high and low volume
production runs and provides coating
services to some of Europe’s most
recognisable automotive brands,
including BMW, JLR, Aston Martin,
VW Bentley and Volvo.
Turnkey project management solutions
are in place to procure and control
mouldings, to paint and provide sub-
assembly operations.
ACT’s latest line was commissioned
in 2015 and incorporates the latest
ABB robot, and has been designed
to spray water based paints on
mouldings up to 1.5m in length.
The appeal and value of an injection moulding can can be greatly enhanced by applying a cosmetic finish
“
“
Satin silver finishes create a premium brand image
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Designed to offer consistent quality, cost efficiency and high volume output the line now supports three major projects for JLR.
Two of the robotic lines are dedicated to exterior trim. ACT produces badges for Range Rover and Discovery models for JLR.
The companies core values of innovation and development, is now being championed by the next generation of the Zaka family. Dr Mujtaba Zaka obtained his PhD on understanding the properties of carbon nanomaterials from the University of Oxford and then worked in industry in both the UK and Germany, before joining ACT in 2016.
Since joining ACT he has made significant advancements in the application of paints by robotic spraying and is currently designing two new state-of-the-art robotic spray lines which the company hopes to commission and install next year.
Looking further ahead, Mujtaba is collaborating with US corporations
to develop novel coatings based on
carbon nanomaterials. Of particular
interest are transparent conductive
coatings which can be applied by
conventional spraying methods. These
coatings are used in the manufacture
of touch screens but can also provide
protection against EM/RF interference.
Collaboration with a German partner
has resulted in unique products being
designed by using a combination of
physical vapour deposition (PVD) and
laser profiling. The development is
covered by a non-disclosure agreement
(NDA) but the company is confident
the first production components will
be installed on a car being launched
next year.
Going forward, the management team
remains steadfast in its belief of our
core values. To achieve sustainable
growth it must invest in the latest
technology, develop innovative
processes, and provide world class
customer service.
The company’s core value of innovation and development, is now being championed by Dr Mujtaba Zaka
“
“
Dr Mujtaba ZakaRange Rover moulding being de-ionised prior to robotic spraying
43SI PROTECH |
MANUFACTURING & SERVICES
With a long-standing history of developing and producing revolutionary, high-spec injection mouldings, primarily for the beverage industry,
SI Protech has become a respected and recognised leader in the manufacturing industry Having been been acquired by US corporation, Joseph Company in 2016, the company strategy has been strengthened in the areas of innovation and investment.
Founded in 1997 by sole trader, Mark Sillince, SI Protech has grown rapidly. The
company, now based Littlehampton, began by producing initial designs and
prototyping then, as a result of customer demand, developed increasingly into
production engineering and manufacturing.
It was important for the company to maintain its heritage of development and
innovation, so founder Mark Sillince as Research and Development (R&D) Director
remains very much at the heart of product and process development. Our new
Managing Director, Alan Edmonds, leads the company in strategy and financial
success. The company has recently won an award for the best manufacturing
business in the local area.
Focus on innovation
Innovation is at the core of the company’s existence and has been since its
foundation. Founder, Mark Sillince, was the inventor of the original can widget for
Boddingtons – one of the biggest packaging revolutions in the beverage sector. His
influence is still powerful in all areas of the business and this underpins SI Protech’s
reputation as a solutions provider in the beverage industry.
Alan Edmonds, Managing Director
Our bespoke machines semi-automatically assemble multiple parts, apply unique identifiers with Laser Mark, and 100% leak test the finished assembly
FACTS ABOUT SI PROTECH
» Started trading in 1997
» 30,000 sq ft factory in Littlehampton
» 35 employees
» £4 million turnover
» 75% export
SI Protech
SI Protech invests 10% of its annual turnover in research and development
“ “
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The introduction of the world’s first self-chilling can (Chill-Can®) has also been one of the company’s latest and proudest successes. This technology will revolutionise the way drink manufacturers market their products, as well as the way in which consumers enjoy them. The technology is now being developed to be used in the medical and cosmetic industries – a huge and exciting market development for SI Protech.
‘Creative problem solving gives us that competitive edge that every business strives to achieve,’ commented Mark Sillince. ‘Rather than just delivering a product that our customers think they want, we work alongside them to develop the ultimate solution for their objectives. We share the development process and the success of delivery with them.’
With this long-standing expertise as its driving force, SI Protech is proud of the number of established and long-serving customers with whom it continues to work. The company also continues to develop and produce some of the beverage sector’s highest quality beer keg components, putting the company at the leading edge of the industry.
Keeping people motivated
In recent years, the structure of SI Protech has changed significantly with the Joseph Company now a majority and US-based shareholder, a new managing director in place, plus a number of patents pending on some exciting new product developments, SI Protech is clear about the way ahead. Despite this recent change, the positive company culture has remained the same since its inception. This stability is something of which we are proud, having worked hard to find the perfect balance between creativity and practicality.
With a flexible team of 25 core staff, plus 10 seasonal contract employees, our manufacturing processes rely on committed, carefully-trained people and all members of the team that are highly skilled . Even as automation becomes a bigger part of the operations, staff are always redeployed in other areas of the manufacturing process, ensuring their specialities continue to drive the business – and importantly, they know the company is committed to them. This generates loyalty among our core team and helps to nurture creativity and accountability – all key values within SI Protech.
Alan Edmonds comments: ‘It’s a great culture; and one that is world class, customer driven and the expectation to adopt best practice is also driven by the senior management.’ Whether it’s via the training and development opportunities or the profit sharing scheme, creating an inspired, friendly, motivated culture within SI Protech is the main aim.
Creative problem solving gives us that competitive edge
“ “
A robot removing beer keg valve parts from a plastic injection moulding tool
» H O W D O E S T H E C H I L L - C A N ® W O R K ?
In the self-chilling Chill-Can®, the beverage can has a built in Heat Exchange Unit (HEU) which contains the technology necessary to chill the drink in under a minute. Upon activation (pressing the button at the base of the can), the patented technology activates the environmentally-safe reclaimed CO
2 in the HEU
that leads to the chilling of the beverage.
The Chill-Can® is a revolutionary, safe, environmentally-friendly patented technology that the beverage industry has coveted for decades.
45SI PROTECH |
MANUFACTURING & SERVICES
Exporting
The company produces over 35 million
components and assemblies per year.
75% of the goods SI Protech produces
are exported around Europe and the
rest of the world, with multinational
companies coming to a small town
in West Sussex to find solutions and
have their products developed and
manufactured. With the influence of
Joseph Company behind them, access
to and growth in the US market is
assured and very much part of the plan.
Trust in the company from across the
world comes from its quality assurance
with every client and project. SI
Protech is ISO 9001 certified for quality
across all areas of the business, and
is ISO 14001 certified for the highest
environmental standards, in an industry
where these can be easily overlooked.
These internationally recognised
accreditations, provide assurance even
beyond the proven record of quality
and service that precedes SI Protech.
Investment and intellectual property (IP)
SI Protech invests 10% of its annual
turnover into research and development.
This substantial investment plus further
investment in automated assembly
equipment and our people has played
a vital part in SI Protech’s growth. By
constantly improving the infrastructure
and equipment, we can ensure work
is always at the highest standard
and our functions keep up with the
latest technology.
Securing more of our own IP, in
particular patents and trademarks,
is embedded in plans for company
growth. The volume of innovative
products SI Protech has developed over
the years means holding our own IP has
been a huge leap forward in competing
and co-operating with other big
names, with £100,000 having been
spent on IP registrations in recent years.
The future is in IP
SI Protech currently turns over £4
million and, having seen a 20%
growth in sales from 2015 to 2016,
we expect to see a 15–20% growth in
2017. Investment is driving the future
of SI Protech, with plans for 50% of
turnover coming from our own IP
by 2020. A willingness to embrace
change and a desire to extend into
new sectors and businesses will enable
remarkable growth, as the company
enters a new era.
Management team receiving ISO 9001 Quality and ISO 14001 Environmental certification in 2016. Vasco Miguel, Mark Sillince, Alan Edmonds, Stewart Ray and Neil Cranfield
Top: Communication headset typically used by retail stores Bottom: Medical analyser used to monitor lithium levels
Air and beer keg valve containing 43 parts in assembly
46 | CHAMCOTEC
THE PARLIAMENTARY REVIEW
Highlighting best practice
Paul Morris, Managing Director, Chamcotec Ltd
Chamcotec was formed as a result of one man’s boredom. I had actually been long retired but, in 2006, I wanted a new challenge so set up Chamcotec in Flint, North
Wales. Chamcotec initially began producing shampoos and sanitisers for pets, and later started producing antibacterial products for the healthcare and farming industries. One of the key ingredients in our products is a Bioflavonoid that is highly antibacterial and antiviral.
This particular Bioflavonoid has been known since the 1930s. The issue since
its initial discovery was always in extracting it, in a consistently stable and active
enough manner so that it could be consistently reproduced, in order for it to be a
viable highly-effective product suitable for onward use. With our genuinely unique
process, Chamcotec has achieved this. Chamcotec now produces approximately
30 different products for use in the pet care, health, farming, dairy and
poultry sectors.
Using flavonoids
In the dairy industry, the development of our products have proven particularly
influential as they are currently being used as an organic alternative to peracetic
acid to sanitise dairy lines and milking equipment, reducing cell counts and as an
aid to reducing mastitis. Tested to BS EN 1656, the highest veterinary standard,
these products are highly effective. Not only does peracetic acid destroy silicon
membranes within milking equipment it is also a noxious substance; it has proved
most unpleasant for the cows and for the farmers handling it.
FACTS ABOUT CHAMCOTEC
» Founded 2006
» Produces products to the highest BS EN 1656 Standard
» Only producer of bioflavonoid-based organic sanitising products
Chamcotec
47CHAMCOTEC |
MANUFACTURING & SERVICES
Our dairy sanitiser product is neutral, after use it can be disposed of down the drain or slurry pit, with no harmful environmental impact. The product continues to work long after use and is also organic farmers and growers -approved. This particular product took six years to develop; while the central issue was not being able to produce it, but doing so in a consistent and effective way. A lot of what Chamcotec does is based around the core Bioflavonoid, this natural bioflavonoid forms part of a plant’s natural defences.
For example, if a rose gets black mould, it will produce this substance in order to inhibit the contagion. It is also particularly prevalent in acidic fruits such as oranges. Creating and extracting this bioflavonoid is challenging – to produce a tonne of ready-to-use bioflavonoid requires in the region of 50 tonnes of oranges but its efficacy goes a long way. More prevalent quaternary-based antibacterial substances found in every day household products are typically effective at one in 20. Bioflavonoid-based products, on the other hand, are effective at dilutions of more than 1,000 to 1, depending on use. For example a large swimming pool could be sanitised with a very small amount.
Chamcotec growth pattern has been somewhat strange to date. While demand has increased, the number of people on its team has decreased. At one time Chamcotec had eight staff but this now stands at four. This was simply a result of being able to operate with smaller numbers. One person works within sales with the remainder in production and dispatch. I work within the formulation side of the business. Chamcotec is quite secretive about its production and formulation methods. The Chamcotec ethos is that if Chamcotec patents the formulation of a product, then it is in effect telling competitors how
to extract Bioflavonoids and how to make its products. After taking advice from several patent lawyers, it was decided to operate this current practice This may change someday and we will explore the patent route in the future, but for now Chamcotec believes that the best option is not to divulge its methods and formulations. It is important that Chamcotec protects its unique position because, unquestionably, one of Chamcotec’s strengths is that it is the only company in the world making a highly-effective Bioflavonoid product. Chamcotec are certainly not aware of any competitors. Many companies and people have tried previously to produce Bioflavonoids in a manner to make them commercially viable, to date only Chamcotec has managed to achieve this.
Word of mouth
Once customers have used Chamcotec products, it is most common for them to keep doing so. This has put Chamcotec in the fortunate position of having consistent repeat sales. Our marketing budget is zero, other than a few flyers occasionally sent out to farmers. The sectors in which Chamcotec operates are very vocal. Farmers talk to each other regularly via on line forums and at markets, about what products they use on their farms and recommendations are made
Six years in development and approved by organic farmers
“ “
Organic approved milking equipment sanitiser
Alcohol-free hand sanitising gel
48 | CHAMCOTEC
THE PARLIAMENTARY REVIEW
Highlighting best practice
between them. Pet users will commonly talk about the products in online forums and with one another at shows. This results in the Chamcotec customer base being a mix of individuals and agents distributed all around the UK.
Being organic and non-toxic, Chamcotec products do no environmental damage. The initial challenge for Chamcotec is having its products accepted in the marketplace as a viable alternative to established offerings. Often, the thinking can be that an organic product is not as effective as a non-organic one. With some clients this results in an education process. But this is results-driven, and we have found that once a customer has tried Chamcotec products, and seen tangible benefits, then they are won over. A farmer, for example, is more concerned about the results rather than about the technical aspects of a product – they are certainly more concerned to improve yields and reduce the incidence of mastitis.
Recognition of innovation
Along with customers, Chamcotecs
work has also received validation from
the Government. Chamcotec was the
subject of a Technology Strategy Board
(now Innovate UK) review some four
years ago. On their point scale used
to measure innovation, Chamcotec
scored 49 out of 50 – among the
highest they’ve had. This scored
Chamcotec on effectiveness of the
product, how the products are viewed
by potential customers and test results.
Chamcotec see farming as a growth
area for the future. There is an industry
drive to move away from antibiotic
and noxious products and towards
environmentally-friendly, organic ones.
This fits the Chamcotec remit perfectly.
Pet care is another interesting area
for Chamcotec, realising new product
launches within the last year. Health
care has also proved strong, with
Chamcotec products proven to be
highly effective against infections like
MRSA, but there are some limitations
around what we can do in that sector
because of price.
A publicly-funded organisation like
the NHS will naturally seek to buy
less expensive hand gels, but these
are less effective so it’s a balance
between costs and results for them.
Chamcotec also plans and currently
has on trial poultry sector sanitising
products. These are being tested on
10 farms and breeding houses within
the poultry sector. These products are
currently achieving, by the elimination
of parasites and harmful bacteria, an
increase in yield of 3%, a substantial
increase in money terms for the
farmers involved. Chamcotec has also
developed products for use within
poultry processing plants in order to
eliminate campylobacter within them
– currently a very topical issue for
both the sector and the Food Safety
Agency.
The company has developed products for use within poultry processing plants
“
“
A range of our products are for domestic use
49ESSENTIAL EARTH |
MANUFACTURING & SERVICES
Gez Murphy, Managing Director
Christmas is coming
Essential Earth contract candle manufacturing was created by Gez Murphy to forge alliances with leading candle brands with the main aim of giving certainty of supply
in a professional and costeffective matter. The first brand we teamed up with was Ed and Claire Croft’s Abahna who we were most grateful to when they came on board with a new manufacturer and gave support and showed belief in us. Since then Abahna and Essential Earth have grown together and it’s been a privilege to be a part of their success.
Whilst we cut our teeth with Abahna we worked with some major brands for the next year or so and eventually became a junior manufacturer and then full manufacturer. This in turn opened up numerous doors as our client portfolio spoke volumes in the industry and gave new start-ups and existing brands great assurances they were dealing with a reputable manufacturer.
Our environmental focus
At the heart of Essential Earth’s ethos is an adherence to using natural vegetable wax blends which are made using only waxes which are produced from sustainable and renewable crops. We don’t use any paraffin waxes. All of our core range of fragrances are 100% natural essential oil fragrances. We do work with fragrances which are made using essential oils but are not 100% natural.
Manufacturing with a retail perspective
‘Delivering at the point of need‘. All of our clients suffered serious supply problems when the peak season started, it was rife in the industry. With my retail background
FACTS ABOUT ESSENTIAL EARTH
» Elmley Lovett Worcestershire, Warwick Bridge Cumbria
» Founded 2010
» Manufacturer of luxury candle brands
» 100% natural vegetable waxes
» Employs 11 staff
» Posted 2016 turnover £393,000
Essential Earth
Manufacturing from a retail view
“ “
50 | ESSENTIAL EARTH
THE PARLIAMENTARY REVIEW
Highlighting best practice
and experience I approached manufacturing from a retail view, you need it now I’ll supply it now. Simply, we receive a PO with a delivery date and that’s what we work to without delay. Despite the many challenges component suppliers create we’ve put together a format which enables us to deliver. At the centre of this working practise is we are in fact not a 9–5 workplace, we did what it took and
in the early days and sometimes 7am to 10pm was an extreme we faced to achieve our goals. Now we’ve grown to 11 staff this no longer needs to happen but when called for, and it happens, we go that extra mile. Why? Simply, if the client hasn’t got it then their retailers can’t sell it which then comes back around to us and we can’t make it. We have without a doubt helped our clients grow quicker due to their confidence when negotiating sales with major retailers. To date, this has been achieved despite challenges placed in front of us. In this age of automation and shop floor technology, the candle making process has stayed traditional through a handcrafted approach drawing on artisan methods.
Buying into the ethos
We don’t pay minimum wage and as such don’t have a workforce with a minimum wage mentality. Extra hours at busy periods are there for our workers and when asked , they deliver due to the very hands on management team which includes my wife Ellen and our Ryelands site general manager Kelly. The whole group is a team and we have a very high staff retention rate due to the environment we create to work in and the benefits that offers, which in turn means our clients have an experienced and dedicated candle supplier. This didn’t really gain any momentum until 2013, so despite our relative success over the 4 years the UK manufacturing industry remains a challenging place to operate in and clearly has a problem seeing ‘The bigger picture’ and clearly has no intention or will to operate with an ethos of delivering at all costs. When the peak season approaches we work to counteract the problems we’ll face and minimise the effect that will have on us to deliver, this in itself is a very difficult process and something we deal with year in year out.
We are not a manufacturer in any ordinary sense of the word
“ “In July we start preparing our Christmas orders
Ellen and the Warwick Mill team
51ESSENTIAL EARTH |
MANUFACTURING & SERVICES
Developing Essential Earth
We are in advanced stages of signing
off with a major UK candle brand who
have negotiated a substantial deal
with Canada and the USA through a
rights deal with a sole distributor.
On top of this we have 3 new ventures
about to go out into the marketplace
with their new branded products and
despite the excitement I have for them
all I also despair at the difficulty and
short sightedness the manufacturing
sector shows to start ups. Essential
Earth sees every one of these as
possibly the next ‘Big Thing’ and as
such we price our manufacturing costs
not much higher than our established
brands. However, every other supplier
in the chain charges excessively as
the quantities are relatively small
compared to the major brands. They
have no vision and work only on
short term gain which we didn’t do
with a gift market entrepreneur who
had an idea but needed to be very
competitive in early 2016 and who
went on the place £60,000 plus worth
of orders from a standing start in the
first 12 months, 2017 has also shown
an impressive increase on 2016.
Our ethos has clearly endeared us
to our clients and we grow year on
year with the help of people we work
with through recommendation and
reputation. We are not a manufacturer
in any ordinary sense of the word
and our practises are very simple. Our
growth is steady but remains nailed
to our principles and all of our clients
regardless of size gets the same level of
service. We will work rigorously going
forward to try and get other sectors
in our industry to maybe see things a
little differently and work with us to
help everyone grow… time will tell.
On a final note, finance for business
through the banks has been very
difficult for a long time and we found
it to be near impossible but we came
across The Funding Circle in 2016 and
there is clearly now a platform which
does want to lend and it was very easy,
simple and quick. Check them out.
We don’t pay minimum wage and as such don’t have a workforce with a minimum wage mentality
“
“
Busy busy in the early days
52 | SCENT PERFIQUE
THE PARLIAMENTARY REVIEW
Highlighting best practice
Alice Papiransky, Managing Director and founder of Scent Perfique Ltd
Luxury candle for private label own brand
Scent Perfique Ltd is an international fragrance house and contract manufacturer who are at the forefront of a fast-growing industry. Inspired by market trends, we are
seeking diversity, and challenging perceptions. Self-funded by CEO / Managing Director Alice Papiransky, the company now has a turnover of over £1 million.
Inspiring products in a world of fine fragrances
Specialists in creating inspiring products in a world of fine fragrances, we offer
brand support to multinational companies and also small craft co-operatives.
Scent Perfique is not only recognised worldwide for their quality of fine fragrance
oils but also for producing high-quality candles, wax melts, reed diffusers and room
sprays for the home fragrance industry as well as creating luxury body products and
perfumes for the cosmetic sector. With an extensive fragrance library of over 380
fragrances, which are all International Fragrance Association (IFRA) compliant, they
certainly have a lot to offer.
The stepping stone for new businesses
We see ourselves as the stepping stone for new or existing businesses, offering
them the flexibility to develop and introduce new products, without having to
commit to large Multiple Order Quantity (MOQ) or excessive financial outlay.
This flexibility has opened opportunities to many of our customers especially new
businesses and even those working from home while bringing up their families.
FACTS ABOUT SCENT PERFIQUE
» Premium fragrance oils
» 500% sales growth from 2013-2016
» Stepping stone for new businesses
» Own brand private label
Scent Perfique
53SCENT PERFIQUE |
MANUFACTURING & SERVICES
We have seen our customers’ businesses
grow over the years and some have even
become prestigious high street brands,
independents and on-line retailers.
Being in the position to supply all the
raw materials or the finished product,
branded or unbranded, for re-sale
or private label has also given us the
opportunity to develop and introduce a
wider product range to our customers
helping their business continue to grow.
Manufacturing
The heart of the business revolves
around the core ingredient, Fine
Fragrance. Like no other sector, it
has the ability to inspire and evoke
emotions. This requires creativity when
developing and carefully selecting
a fragrance that is going to be
commercially viable for our clients.
Quality is paramount to Scent Perfique and all our fragrances are quality assured, throughout batches, ensuring there is no compromise to the quality of the end product.
Manufacturing techniques remain traditional to the art of the candle making and all candles are poured and finished by hand at our premises in Ellon. We have certainly seen the demand for ‘own brand’ increase for candles but also for the home fragrancing sector in general.
The popularity of reed diffusers has grown over the past few years and, as a business, we are always looking to make improvements and take things to a new level in terms of performance and quality.
In 2013 we tested a pioneering solvent base that was eco-friendly, odourless and non-toxic and had the ability to enhance a fragrance along with its longevity and is now also compliant with Volatile Organic Compound (VOC) legislation. Our new formulation has proven to be very popular and is still boosting sales. This was a deciding factor for us at the time, and we
invested in a filling machine which has made such a difference to production and lead times, especially as
production continues to increase daily.
Design and development
Our strategy is always focused on product development by introducing innovative and competitive solutions to our clients that will make their brand stand out. So offering guidance and support in the initial stages is paramount, ensuring every aspect of development and production requirements are covered. An attention to details and commitment is where my creative flair and technical excellence meet, so clients are invited to our fragrance studio for a consultation where ideas, perceptions and concepts are drawn together with visuals and of course most importantly the main ingredient: The Fragrance.
Inspiring products in a world of fine fragrances
“ “
An example of a private label candle. We had the pleasure of working with the author of Cults Perfumes, Tessa Williams
54 | SCENT PERFIQUE
THE PARLIAMENTARY REVIEW
Highlighting best practice
Challenges
Over the years we have had to overcome changes to regulations and technical requirements for the cosmetic and home fragrancing sectors. Only last year we were faced with the Classification, Labelling and Packaging (CLP) regulations which threw many of our customers into sheer panic. We recognised that unless we could support our customers in complying with the regulations, we could potentially lose a great deal of business.
We invested in technical software so we are able to produce all the necessary CLP documents for fragrances and finished products. This certainly instills confidence in us as a company that is compliant, especially for our existing clients but also any future companies that will seek our products and services.
Fragrances that make a statement!
It is paramount to Scent Perfique
that our fragrances are the very best
out there on the market. As today’s
consumers have become more sensory
driven and are more educated in
terms of what they require from a
fragrance, I decided that it was time to
take the fragrance world to the next
level by introducing more complex
and sophisticated fragrances. So I
started by introducing a few of our
most popular fragrances in a more
concentrated version.
These are more complex than the
standard versions giving them a
stronger presence in the finished
product. Not knowing if these would
be a success due to the price increase,
I was pleased to get such a good
response and we have continued to
add to the range and even introduced
an INTENSE collection aimed at
attracting the high-end market and we
have achieved this goal.
My fragrance journey began
After researching I saw a gap in the
market for a fragrance oils supplier.
At the time, choice was limited and
the US seemed to be the best option.
Preferring to deal with the UK, I found
a reputable manufacturer, built the
website and introduced my first
eight fragrances.
My journey began in the kitchen then
extended to a workshop in the garden.
Within a few months I had increased
the range of fragrances from the profits
and the company began to grow. Scent
Perfique started to blossom quite rapidly
already employing its first member of
staff, not forgetting calling on friends
and family to help when needed.
Within a few months Scent Perfique
had outgrown the home environment
and I was faced with the next step of
moving into business premises.
Now operating out of Castlepark
Industrial Estate in Ellon,
Aberdeenshire we employ seven
members of staff, who all have
their own responsibilities within the
different departments, and seasonal
staff when required. We are dedicated
to providing an efficient and reliable
service ensuring our customers receive
their goods in a timely fashion.
My journey has been eventful, inspiring
and totally fulfilling and, given that we
have always been self-funded, I am
extremely happy with the position
Scent Perfique Limited has within the
industry today.
Scent Perfique is recognised worldwide for producing the highest quality fragrance oils, fragranced candles, reed diffusers, wax melts and body products
“ “
Luxury reed diffuser for private label own brand
55TRENT OIL LUBRICANTS |
MANUFACTURING & SERVICES
Third generation Directors. Alex Stilborn, Kate McArdle and Dean Bennett.
All industries whether it be manufacturing or construction are increasing their environmental and health and safety considerations across their use of lubricants and
specialist fluids. Alex Stilborn, managing director of Nottingham based Trent Oil Lubricants, says the firm wants to establish itself at the forefront of industry innovation by utilising its smaller size for greater product flexibility.
As a family-business with a background in fuels going back more than 45 years,
Trent shifted its focus deciding to concentrate on their lubricants business in
2007, marking a major step change in the direction of the company. Margins
in the fuel sector had become increasingly squeezed, becoming genuinely
difficult for a smaller firm to compete. We saw our opportunity in manufacturing
lubricants, as many of the major firms were out of touch with the market. Our
decision has seen us continue to grow on a yearly basis as our brand goes from
strength to strength.
We’ve continued developing our own brand while remaining a distributor for
a few key major companies, including Quaker Chemicals, Total and Q8. As of
2017, over 80 per cent of all of our products sold are made by us. With less
risk and higher margins, the financial impact of the lubricants business was also
significant. Following the sale of our fuel business, we were able to nurture the
company we looked after and gradually increase our turnover which in turn
brought the opportunity to add more staff in all areas, sales, administration and
even a chemist. We owe the continued success of our business to the quality and
dedication of our staff.
FACTS ABOUT TRENT OIL LUBRICANTS
» Founded in Nottingham in 1971 as Trent Oil Products Ltd before changing to Trent Oil Lubricants Ltd in 2007
» Produces branded lubricants while also manufacturing for Star UK Ltd and distributing for Total, Q8 and Quaker
» Employs 17 staff with a turnover of £3 million
» Members of the UKLA and VLS Lubricant Industry Associations
» Developing a new range of soluble construction oil’s in conjunction with Nottingham Trent University
» Finalist in the 2016 Midlands Family Business Awards
Trent Oil Lubricants
56 | TRENT OIL LUBRICANTS
THE PARLIAMENTARY REVIEW
Highlighting best practice
Re-engineering products for a changing market
Trent sells products into many
diverse industries, expanding within
engineering and construction. Other
sectors which use our products include
the automotive, commercial, off
highway and agriculture industries.
Such is the level of close collaboration
with engineering companies especially,
our products become mostly customer-
driven. Due to the changing industry
demands on the oils themselves, we’ve
had to adapt our approach by re-
engineering different products to cope
with modern day scenarios. We’ve also
developed many relationships with
additive suppliers which helps to keep
us ahead of our competitors in the
lubricants market.
One of our main associations is
producing the Star Brand for the UK
division of Star Micronics, a global
sliding head machine manufacturer.
Over the course of the past nine
years, this has developed into a strong partnership. Every time Star Micronics sells a machine into the UK, Trent supplies the approved oil when the equipment is rolled out. The Star range of neat cutting oils manufactured by Trent continues to grow as we are the only Star approved oil in the market.
A commitment to innovation
The Star Micronics partnership is just one example of our expanded range being carried forward by customer-driven demands and partnerships. This approach is coupled with a strong commitment to innovation. While industry also looks certain to become more competitive in the future, being an SME works to our advantage. Being a smaller family owned business has allowed Trent to operate with more flexibility, enabling us to adapt new products faster and in turn allowing us the opportunity to meet market demands far quicker than our larger multinational competitors.
We owe the continued success of our business to the quality and dedication of our staff
“
“
c r e a t i v e w i t h o i l
57TRENT OIL LUBRICANTS |
MANUFACTURING & SERVICES
One area in which we’ve demonstrated
this lately has been in our construction
product line. We’ve developed
products to enhance performance as
well as promote the environmental and
health and safety aspect which have
become of paramount importance.
We continue to work closely with
our customers in this area, some of
which make up the largest precast and
general concrete firms in the country.
There is little doubt that many facets
of our industry are changing. Health
and safety requirements are becoming
more stringent while pressures to
develop more environmentally friendly
products have also intensified. With
these factors in mind, Trent Lubricants
hasn’t been afraid to look outside of
the company for help in developing
the next generation of products. One
area where this is evident is a project
where we have worked closely with
nearby Nottingham Trent University to
develop products for the construction
industry. Adapting environmentally
friendly techniques in blending for the
construction industry, saw us eventually
taking on one of the university’s
graduates, in a full-time role.
An increasingly global scope
As an independent manufacturer, our
aim is ensuring international companies
looking to source either specialist or
standard lubricants from us. We have
experienced a significant increase in
interest from Europe and now extend
into new territories. Naturally, this
has meant ramping up our exporting
credentials. Further expansion across
Europe and greater forays into the
Middle East are likely to be the regions
we give the greatest attention to.
Geopolitical factors need to be
considered however, the Brexit issue
is a double edged sword for us. In
the aftermath of the June 2016 vote,
base oils and other raw material
costs have increased significantly.
However, the weakened pound has
worked in our favour in terms of what
we can command on the continent.
The more the pound weakens, the
stronger our exports will continue to
be. While this may not be the most
beneficial scenario long-term, we have
nevertheless identified the positives.
Safer, more user-friendly products
New products continue to dominate
our thinking whatever the sector: with a
focus on developing a new generation of
safer, more user-friendly products. The
replacement of traditional technologies
with more sophisticated ones will also
be an important component of creating
more of these alternatives. This has
meant Trent and its partners exploring
new ways of making them.
Our well-earned reputation is very
important to us. We’ll continue with our
mantra that if you do something well
you will succeed, rather than cut corners
which unfortunately does happen within
our industry. As a third generation
business, we possess a lot of pride in our
achievements. By continuing to deliver
customer-driven products in a quick
and efficient way, we are confident
of securing our place as an industry
innovator for many generations to come.
Our growth as a business is testament to our values that if you do something well you will succeed
“
“We have experienced a significant increase in interest from Europe and now extend into new territories
58 | REVIEW OF PARLIAMENT
Review of Parliament
Prime Minister Theresa May sought to strengthen her position before negotiations with the EU began
A snap electionOn the 19th April 2017, having repeatedly insisted that she had no intention of calling a snap election, Prime Minister Theresa May sprung a complete surprise when she summoned the press to Downing Street to announce she would seek a Commons vote to go to the country on June 8th 2017.
The announcement, made as Parliament returned from its Easter break, had the force of a thunderclap in Westminster. Quite unexpectedly, MPs and parties were plunged into election mode.
The immediate effect was to turn what were now the two remaining Prime Minister’s Question Times of the Parliament into de facto leader’s debates – especially since it was made clear that Theresa May would not take part in the kind of televised debates held in the 2010 and 2015 elections.
The Prime Minister stated her case: ‘There are three things that a country needs: a strong economy, strong defence and strong, stable leadership. That is what our plans for Brexit and our plans for a stronger Britain will deliver... The Right Hon. Member for Islington North (The Labour Leader, Jeremy Corbyn) would bankrupt our economy and weaken our defences and is simply not fit to lead.’
To Conservative jeers, Mr Corbyn counter-attacked: ‘She says that it is about leadership, yet she refuses to defend her record in television debates. It is not hard to see why. The Prime Minister says that we have a stronger economy, yet she cannot explain why people’s wages are lower today than they were 10 years ago or why more
households are in debt. Six million
people are earning less than the
living wage, child poverty is up, and
pensioner poverty is up.’
The two leaders traded more accusations
with Theresa May warning that ordinary
working people would face higher
taxes and lost jobs under Labour while
Mr Corbyn claimed the Prime Minister’s
priority was ‘tax giveaways to the richest
corporations while our children’s schools
are starved of the resources they need
to educate our children for the future’.
Brexit emerged as one of the Prime
Minister’s main campaign themes: ‘every
vote for the Conservatives will make me
stronger when I negotiate for Britain with
the European Union. And every vote for
the Conservatives will mean we can stick
to our plan for a stronger Britain and
take the right long-term decisions for a
more secure future for this country.’
Later that afternoon, the Commons
voted to call an early election, by 522
votes to 13.
What a difference. Theresa May and
Jeremy Corbyn’s final Commons
confrontation before the election
had seen the Conservatives limbering
up for a triumphal campaign which
would culminate in the inevitable
smashing of their Labour opponents.
When the diminished, battered band
of Conservative MPs reassembled,
minus their parliamentary majority,
for the state opening of Parliament on
June 21st, they were chastened and
uncertain, while euphoria gripped the
occupants of the Labour benches.
When they came to speak in the
traditional debate on an address
thanking Her Majesty for the Queen’s
Speech – the new Government’s
legislative programme – the dynamic
between the two main figures had
changed completely. Mr Corbyn
seemed a far more confident, assertive
parliamentary performer, relishing the
opportunity to throw back the taunts
that had been hurled at him during
the campaign.
A Government which had warned
that he could only gain power in
a ‘coalition of chaos’ with the SNP
and the Lib Dems had been forced
to negotiate for the support of the
Northern Ireland Democratic Unionists
... and as the first debate of this
new Parliament began, that support
had not been secured. Mr Corbyn
could not resist the open goal. To
triumphant Labour laughter he noted
that ‘the latest coalition may already
be in some chaos’.
‘Nothing could emphasise that chaos
more than the Queen’s Speech
we have just heard: a threadbare
legislative programme from a
Government who have lost their
majority and apparently run out of
ideas altogether. This would be a thin
legislative programme even if it was
for one year, but for two years – two
years? There is not enough in it to fill
up one year.’
That was a reference to the
Government’s decision to declare a
two-year Parliamentary Session – a
procedural move intended to ensure
ministers could push through vital
Brexit legislation in time for the exit
date in March 2019. Mr Corbyn
mocked the Prime Minister for
dropping a series of election promises
that had not found favour with the
voters: means-testing the winter fuel
allowance and replacing the triple lock
on pensions among others.
On Brexit, Mr Corbyn stuck to Labour’s
careful positioning in favour of a deal
with the EU ‘that puts jobs and the
economy first’. He called for full access
to the single market and a customs
arrangement that provided Britain
with the ‘exact same benefits’ as now.
And in his final flourish he warned
the Prime Minister that Labour were
now ‘not merely an Opposition; we
are a Government in waiting, with a
policy programme that enthused and
The Queen’s Speech
The Queen’s Speech announced the government’s legislative plan for the coming Parliament
59REVIEW OF PARLIAMENT |
MANUFACTURING & SERVICES
Review of Parliament
Prime Minister Theresa May sought to strengthen her position before negotiations with the EU began
A snap electionOn the 19th April 2017, having repeatedly insisted that she had no intention of calling a snap election, Prime Minister Theresa May sprung a complete surprise when she summoned the press to Downing Street to announce she would seek a Commons vote to go to the country on June 8th 2017.
The announcement, made as Parliament returned from its Easter break, had the force of a thunderclap in Westminster. Quite unexpectedly, MPs and parties were plunged into election mode.
The immediate effect was to turn what were now the two remaining Prime Minister’s Question Times of the Parliament into de facto leader’s debates – especially since it was made clear that Theresa May would not take part in the kind of televised debates held in the 2010 and 2015 elections.
The Prime Minister stated her case: ‘There are three things that a country needs: a strong economy, strong defence and strong, stable leadership. That is what our plans for Brexit and our plans for a stronger Britain will deliver... The Right Hon. Member for Islington North (The Labour Leader, Jeremy Corbyn) would bankrupt our economy and weaken our defences and is simply not fit to lead.’
To Conservative jeers, Mr Corbyn counter-attacked: ‘She says that it is about leadership, yet she refuses to defend her record in television debates. It is not hard to see why. The Prime Minister says that we have a stronger economy, yet she cannot explain why people’s wages are lower today than they were 10 years ago or why more
households are in debt. Six million
people are earning less than the
living wage, child poverty is up, and
pensioner poverty is up.’
The two leaders traded more accusations
with Theresa May warning that ordinary
working people would face higher
taxes and lost jobs under Labour while
Mr Corbyn claimed the Prime Minister’s
priority was ‘tax giveaways to the richest
corporations while our children’s schools
are starved of the resources they need
to educate our children for the future’.
Brexit emerged as one of the Prime
Minister’s main campaign themes: ‘every
vote for the Conservatives will make me
stronger when I negotiate for Britain with
the European Union. And every vote for
the Conservatives will mean we can stick
to our plan for a stronger Britain and
take the right long-term decisions for a
more secure future for this country.’
Later that afternoon, the Commons
voted to call an early election, by 522
votes to 13.
What a difference. Theresa May and
Jeremy Corbyn’s final Commons
confrontation before the election
had seen the Conservatives limbering
up for a triumphal campaign which
would culminate in the inevitable
smashing of their Labour opponents.
When the diminished, battered band
of Conservative MPs reassembled,
minus their parliamentary majority,
for the state opening of Parliament on
June 21st, they were chastened and
uncertain, while euphoria gripped the
occupants of the Labour benches.
When they came to speak in the
traditional debate on an address
thanking Her Majesty for the Queen’s
Speech – the new Government’s
legislative programme – the dynamic
between the two main figures had
changed completely. Mr Corbyn
seemed a far more confident, assertive
parliamentary performer, relishing the
opportunity to throw back the taunts
that had been hurled at him during
the campaign.
A Government which had warned
that he could only gain power in
a ‘coalition of chaos’ with the SNP
and the Lib Dems had been forced
to negotiate for the support of the
Northern Ireland Democratic Unionists
... and as the first debate of this
new Parliament began, that support
had not been secured. Mr Corbyn
could not resist the open goal. To
triumphant Labour laughter he noted
that ‘the latest coalition may already
be in some chaos’.
‘Nothing could emphasise that chaos
more than the Queen’s Speech
we have just heard: a threadbare
legislative programme from a
Government who have lost their
majority and apparently run out of
ideas altogether. This would be a thin
legislative programme even if it was
for one year, but for two years – two
years? There is not enough in it to fill
up one year.’
That was a reference to the
Government’s decision to declare a
two-year Parliamentary Session – a
procedural move intended to ensure
ministers could push through vital
Brexit legislation in time for the exit
date in March 2019. Mr Corbyn
mocked the Prime Minister for
dropping a series of election promises
that had not found favour with the
voters: means-testing the winter fuel
allowance and replacing the triple lock
on pensions among others.
On Brexit, Mr Corbyn stuck to Labour’s
careful positioning in favour of a deal
with the EU ‘that puts jobs and the
economy first’. He called for full access
to the single market and a customs
arrangement that provided Britain
with the ‘exact same benefits’ as now.
And in his final flourish he warned
the Prime Minister that Labour were
now ‘not merely an Opposition; we
are a Government in waiting, with a
policy programme that enthused and
The Queen’s Speech
The Queen’s Speech announced the government’s legislative plan for the coming Parliament
THE PARLIAMENTARY REVIEW
Review of Parliament
60 | REVIEW OF PARLIAMENT
The fire that destroyed Grenfell Tower,
a social housing block in the London
Borough of Kensington and Chelsea,
seemed to some to crystallise the issues
that had driven the ‘Corbyn Surge’ in
the General Election just days earlier.
Accusations about the neglect of
social housing tenants, chronic under-
investment and official incompetence
were flying, even while the pall of
smoke still hovered over the capital and
the horrific images of the blaze were
replayed on TV.
So potent was the symbolism that it
became intertwined in the debates
on the post-election Queen’s Speech
- but the Government also committed
to keep MPs informed about the
aftermath, the efforts to identify
casualties in the wreckage of the
tower, to re-house and assist those
who had lost their homes, and to set
up a public inquiry.
So it was that the Communities
Secretary, Sajid Javid, came to the
Commons on July 3rd to announce
£2.5 million had been distributed
from the special £5 million fund set
up to help the residents. Mr Javid said
the public inquiry and the criminal
investigation had to be allowed the
space to follow the evidence wherever
it took them, and everyone should be
careful not to prejudice their work.
Responding to the Labour MP, David
Lammy, who had lost a family friend in
the fire, he added that although it was
for the judge to determine the scope
of the inquiry, he expected it to be ‘as
broad and wide-ranging as possible’.
Mr Javid also dealt with the key issue of
the authorities’ inability to say exactly
how many people had died: ‘There
has been much speculation about who
was in Grenfell Tower on the night of
the fire, and it is vital that we find out.
The Director of Public Prosecutions
has made it clear that there will be no
prosecution of tenants ... who may have
been illegally sub-letting their property,
... There may have been people living in
flats that were illegally sub-let who had
no idea about the true status of their
tenancy. Their families want to know if
they perished in the fire. These are their
sons, their daughters, their brothers and
their sisters. They need closure, and that
is the least that they deserve.’
The Government was also taking
urgent action to avoid another tragedy
in buildings with architectural cladding
similar to that which appeared to have
been a factor in the Grenfell fire.
Grenfell Tower
engaged millions of people in this
election, many for the first time in
their political lives. We are ready to
offer real strong and stable leadership
in the interests of the many, not
the few.’
Tributes for the Grenfell victims came from across the country
Back in March, when an election seemed a distant prospect, parliament’s main focus was on the European Union (Notification of Withdrawal) Bill. This Bill, which would give Theresa May the authority to begin the UK’s divorce from the European Union, was forced on the Government after a Supreme Court ruling that Parliamentary approval was required to begin the process.
Despite fears that the Bill could be watered down or even reshaped to reverse the Referendum verdict, it passed through the Commons unscathed. All attempts to amend, or add, to its 136 words were voted down. Predictions of a major rebellion of up to 50 Conservative Remainers proved unfounded, and only a handful defied the party whip.
But when it moved on to the House of Lords, where there is no Government majority and a large concentration of pro-EU peers, the Bill was amended twice.
One change guaranteed the rights of EU
citizens living in the UK, and the second
promised Parliament a ‘meaningful vote’
on the final Brexit deal. That meant
the Bill had to return to the Commons
because both Houses of Parliament must
agree on the final wording of legislation.
After much debate, MPs rejected both
Lords’ amendments, the Bill was sent
back for immediate consideration in
the House of Lords, where David Davis
came to watch his Junior Minister,
Lord Bridges, call on Peers to drop
their opposition. And while the Liberal
Democrat, Lord Oates, did urge Peers
to continue defying the Government,
support for the amendment melted
away, and the attempt to throw it back
to MPs was once more rejected, as was
the attempt to keep the ‘meaningful
vote’. The final form of the Bill was
settled – and it was sent off for the
Royal Assent, un-amended.
The passage of the European Union (Notification of Withdrawal) Act cleared the way for the Prime Minister to act
on the Referendum verdict and formally trigger Britain’s departure talks with the EU.
She was greeted by cheering Conservative MPs when she announced, on the 29th March, that the process had begun: ‘A few minutes ago, in Brussels, the United Kingdom’s permanent representative to the EU handed a letter to the President of the European Council on my behalf confirming the Government’s decision to invoke Article 50 of the treaty on European Union. The Article 50 process is now under way and, in accordance with the wishes of the British people, the United Kingdom is leaving the European Union.’
Last rites on the Brexit Bill
Article 50 is triggered
Theresa May meets with European Council President Donald Tusk in Downing Street
David Davis, Secretary of State for Exiting the European Union since July 2016
61REVIEW OF PARLIAMENT |
MANUFACTURING & SERVICES
The fire that destroyed Grenfell Tower,
a social housing block in the London
Borough of Kensington and Chelsea,
seemed to some to crystallise the issues
that had driven the ‘Corbyn Surge’ in
the General Election just days earlier.
Accusations about the neglect of
social housing tenants, chronic under-
investment and official incompetence
were flying, even while the pall of
smoke still hovered over the capital and
the horrific images of the blaze were
replayed on TV.
So potent was the symbolism that it
became intertwined in the debates
on the post-election Queen’s Speech
- but the Government also committed
to keep MPs informed about the
aftermath, the efforts to identify
casualties in the wreckage of the
tower, to re-house and assist those
who had lost their homes, and to set
up a public inquiry.
So it was that the Communities
Secretary, Sajid Javid, came to the
Commons on July 3rd to announce
£2.5 million had been distributed
from the special £5 million fund set
up to help the residents. Mr Javid said
the public inquiry and the criminal
investigation had to be allowed the
space to follow the evidence wherever
it took them, and everyone should be
careful not to prejudice their work.
Responding to the Labour MP, David
Lammy, who had lost a family friend in
the fire, he added that although it was
for the judge to determine the scope
of the inquiry, he expected it to be ‘as
broad and wide-ranging as possible’.
Mr Javid also dealt with the key issue of
the authorities’ inability to say exactly
how many people had died: ‘There
has been much speculation about who
was in Grenfell Tower on the night of
the fire, and it is vital that we find out.
The Director of Public Prosecutions
has made it clear that there will be no
prosecution of tenants ... who may have
been illegally sub-letting their property,
... There may have been people living in
flats that were illegally sub-let who had
no idea about the true status of their
tenancy. Their families want to know if
they perished in the fire. These are their
sons, their daughters, their brothers and
their sisters. They need closure, and that
is the least that they deserve.’
The Government was also taking
urgent action to avoid another tragedy
in buildings with architectural cladding
similar to that which appeared to have
been a factor in the Grenfell fire.
Grenfell Tower
engaged millions of people in this
election, many for the first time in
their political lives. We are ready to
offer real strong and stable leadership
in the interests of the many, not
the few.’
Tributes for the Grenfell victims came from across the country
Back in March, when an election seemed a distant prospect, parliament’s main focus was on the European Union (Notification of Withdrawal) Bill. This Bill, which would give Theresa May the authority to begin the UK’s divorce from the European Union, was forced on the Government after a Supreme Court ruling that Parliamentary approval was required to begin the process.
Despite fears that the Bill could be watered down or even reshaped to reverse the Referendum verdict, it passed through the Commons unscathed. All attempts to amend, or add, to its 136 words were voted down. Predictions of a major rebellion of up to 50 Conservative Remainers proved unfounded, and only a handful defied the party whip.
But when it moved on to the House of Lords, where there is no Government majority and a large concentration of pro-EU peers, the Bill was amended twice.
One change guaranteed the rights of EU
citizens living in the UK, and the second
promised Parliament a ‘meaningful vote’
on the final Brexit deal. That meant
the Bill had to return to the Commons
because both Houses of Parliament must
agree on the final wording of legislation.
After much debate, MPs rejected both
Lords’ amendments, the Bill was sent
back for immediate consideration in
the House of Lords, where David Davis
came to watch his Junior Minister,
Lord Bridges, call on Peers to drop
their opposition. And while the Liberal
Democrat, Lord Oates, did urge Peers
to continue defying the Government,
support for the amendment melted
away, and the attempt to throw it back
to MPs was once more rejected, as was
the attempt to keep the ‘meaningful
vote’. The final form of the Bill was
settled – and it was sent off for the
Royal Assent, un-amended.
The passage of the European Union (Notification of Withdrawal) Act cleared the way for the Prime Minister to act
on the Referendum verdict and formally trigger Britain’s departure talks with the EU.
She was greeted by cheering Conservative MPs when she announced, on the 29th March, that the process had begun: ‘A few minutes ago, in Brussels, the United Kingdom’s permanent representative to the EU handed a letter to the President of the European Council on my behalf confirming the Government’s decision to invoke Article 50 of the treaty on European Union. The Article 50 process is now under way and, in accordance with the wishes of the British people, the United Kingdom is leaving the European Union.’
Last rites on the Brexit Bill
Article 50 is triggered
Theresa May meets with European Council President Donald Tusk in Downing Street
David Davis, Secretary of State for Exiting the European Union since July 2016
THE PARLIAMENTARY REVIEW
Review of Parliament
62 | REVIEW OF PARLIAMENT
On the afternoon of March 22nd, as MPs were engaged in a routine vote of the Pensions Bill, a man drove his car into pedestrians just outside, killing two people and injuring dozens more, before stabbing to death a police officer who was guarding the gates to the Houses of Parliament, and he was then shot dead himself.
The sitting of the Commons was suspended and MPs were held in their Chamber for several hours, before being escorted away. When they returned the next day, they began with a minute of silence. Then the Speaker opened proceedings by expressing ‘our heartfelt condolences to the families and friends of the victims of this outrage. A police officer, PC Keith Palmer, was killed defending us, defending Parliament and defending parliamentary democracy.’
The Prime Minister was heard in silence as she updated MPs: ‘Yesterday, an act of terrorism tried to silence our democracy, but today we meet as
normal, as generations have done
before us and as future generations
will continue to do, to deliver a simple
message: we are not afraid, and our
resolve will never waver in the face of
terrorism. We meet here, in the oldest
of all Parliaments, because we know
that democracy, and the values that it
entails, will always prevail.’
A terrorist attack on Parliament
She added that she wanted to build
a close partnership with the EU: ‘We
want to continue to buy goods and
services from the EU, and sell it ours
... Indeed, in an increasingly unstable
world, we must continue to forge the
closest possible security co-operation
to keep our people safe. We face the
same global threats from terrorism
and extremism.’
Jeremy Corbyn warned against leaving
without a trade agreement: ‘the Prime
Minister says that no deal is better than
a bad deal, but the reality is that no
deal is a bad deal.
He said the debate had now moved
on to what a post-Brexit Britain would
be like: ‘There are Conservatives who
want to use Brexit to turn this country into a low-wage tax haven. Labour is determined to invest in a high-skill, high-tech, high-wage future ... Labour will not give this Government a free hand to use Brexit to attack rights and protections and to cut services, or to create a tax dodger’s paradise.’
The eurosceptic Conservative, Jacob Rees-Mogg, quoted the Elizabethan hero Sir Francis Drake: ‘’There must be a begynnyng of any great matter, but the contenewing unto the end untyll it be thoroughly ffynyshed yeldes the trew glory’ ... I wish my Right Hon. Friend good luck and good fortune in her negotiations until she comes to true glory and is welcomed back to this House as a 21st century Gloriana.’
The attack on Westminster was one of several terrorist attacks in the UK during the year
This year more than most, US
politics had a bearing on our own.
Not only were many MPs looking
across the Atlantic for a trade deal
and an enhancement of the ‘special
relationship’, following the decision
to leave the EU. But the American
people themselves had managed to
outdo the British electorate when it
came to delivering the most surprising
democratic decision of 2016.
As recently as January 2016, a small
number of MPs had gathered in
Westminster Hall to debate whether or
not Donald Trump should be banned
President Trump
She gave an account of the previous
day’s events and ended by declaring
that the best response to terrorism
was to act normally: ‘As I speak,
millions will be boarding trains and
aeroplanes to travel to London and
to see for themselves the greatest
city on Earth. It is in these actions –
millions of acts of normality – that we
find the best response to terrorism:
a response that denies our enemies
their victory, that refuses to let them
win, that shows we will never give
in; a response driven by that same
spirit that drove a husband and father
to put himself between us and our
attacker, and to pay the ultimate price; a response that says to the men and women who propagate this hate and evil, “You will not defeat us.” Mr Speaker, let this be the message from this House and this nation today: our values will prevail.’
The Labour Leader, Jeremy Corbyn, said people should not allow the voices of hatred to divide or cower them – adding that PC Keith Palmer had given his life defending the public and democracy.
Watching impassively in the crowd of MPs standing at the Bar of the House, in the area across the Chamber facing the Speaker’s Chair, was the Foreign Office Minister, Tobias Ellwood. He had tried to save PC Palmer’s life by giving him mouth-to-mouth resuscitation. Many MPs took a moment to exchange a word with him as they passed or pat him on the arm. And many of those who spoke over the next hour praised his actions.
Tributes and thanks came from all the Party Leaders – the SNP’s Westminster Leader, Angus Robertson, the Liberal Democrats, Tim Farron, and the DUP’s, Nigel Dodds.
The Conservative MP, James Cleverly, had served with PC Palmer in the army spoke movingly and implored the Prime Minister to ‘posthumously recognise his gallantry and sacrifice formally.’ Theresa May promised that she would.
PC Keith Palmer, who died trying to stop the attacker, was given a full police service funeral, and praised for his heroism
63REVIEW OF PARLIAMENT |
MANUFACTURING & SERVICES
On the afternoon of March 22nd, as MPs were engaged in a routine vote of the Pensions Bill, a man drove his car into pedestrians just outside, killing two people and injuring dozens more, before stabbing to death a police officer who was guarding the gates to the Houses of Parliament, and he was then shot dead himself.
The sitting of the Commons was suspended and MPs were held in their Chamber for several hours, before being escorted away. When they returned the next day, they began with a minute of silence. Then the Speaker opened proceedings by expressing ‘our heartfelt condolences to the families and friends of the victims of this outrage. A police officer, PC Keith Palmer, was killed defending us, defending Parliament and defending parliamentary democracy.’
The Prime Minister was heard in silence as she updated MPs: ‘Yesterday, an act of terrorism tried to silence our democracy, but today we meet as
normal, as generations have done
before us and as future generations
will continue to do, to deliver a simple
message: we are not afraid, and our
resolve will never waver in the face of
terrorism. We meet here, in the oldest
of all Parliaments, because we know
that democracy, and the values that it
entails, will always prevail.’
A terrorist attack on Parliament
She added that she wanted to build
a close partnership with the EU: ‘We
want to continue to buy goods and
services from the EU, and sell it ours
... Indeed, in an increasingly unstable
world, we must continue to forge the
closest possible security co-operation
to keep our people safe. We face the
same global threats from terrorism
and extremism.’
Jeremy Corbyn warned against leaving
without a trade agreement: ‘the Prime
Minister says that no deal is better than
a bad deal, but the reality is that no
deal is a bad deal.
He said the debate had now moved
on to what a post-Brexit Britain would
be like: ‘There are Conservatives who
want to use Brexit to turn this country into a low-wage tax haven. Labour is determined to invest in a high-skill, high-tech, high-wage future ... Labour will not give this Government a free hand to use Brexit to attack rights and protections and to cut services, or to create a tax dodger’s paradise.’
The eurosceptic Conservative, Jacob Rees-Mogg, quoted the Elizabethan hero Sir Francis Drake: ‘’There must be a begynnyng of any great matter, but the contenewing unto the end untyll it be thoroughly ffynyshed yeldes the trew glory’ ... I wish my Right Hon. Friend good luck and good fortune in her negotiations until she comes to true glory and is welcomed back to this House as a 21st century Gloriana.’
The attack on Westminster was one of several terrorist attacks in the UK during the year
This year more than most, US
politics had a bearing on our own.
Not only were many MPs looking
across the Atlantic for a trade deal
and an enhancement of the ‘special
relationship’, following the decision
to leave the EU. But the American
people themselves had managed to
outdo the British electorate when it
came to delivering the most surprising
democratic decision of 2016.
As recently as January 2016, a small
number of MPs had gathered in
Westminster Hall to debate whether or
not Donald Trump should be banned
President Trump
She gave an account of the previous
day’s events and ended by declaring
that the best response to terrorism
was to act normally: ‘As I speak,
millions will be boarding trains and
aeroplanes to travel to London and
to see for themselves the greatest
city on Earth. It is in these actions –
millions of acts of normality – that we
find the best response to terrorism:
a response that denies our enemies
their victory, that refuses to let them
win, that shows we will never give
in; a response driven by that same
spirit that drove a husband and father
to put himself between us and our
attacker, and to pay the ultimate price; a response that says to the men and women who propagate this hate and evil, “You will not defeat us.” Mr Speaker, let this be the message from this House and this nation today: our values will prevail.’
The Labour Leader, Jeremy Corbyn, said people should not allow the voices of hatred to divide or cower them – adding that PC Keith Palmer had given his life defending the public and democracy.
Watching impassively in the crowd of MPs standing at the Bar of the House, in the area across the Chamber facing the Speaker’s Chair, was the Foreign Office Minister, Tobias Ellwood. He had tried to save PC Palmer’s life by giving him mouth-to-mouth resuscitation. Many MPs took a moment to exchange a word with him as they passed or pat him on the arm. And many of those who spoke over the next hour praised his actions.
Tributes and thanks came from all the Party Leaders – the SNP’s Westminster Leader, Angus Robertson, the Liberal Democrats, Tim Farron, and the DUP’s, Nigel Dodds.
The Conservative MP, James Cleverly, had served with PC Palmer in the army spoke movingly and implored the Prime Minister to ‘posthumously recognise his gallantry and sacrifice formally.’ Theresa May promised that she would.
PC Keith Palmer, who died trying to stop the attacker, was given a full police service funeral, and praised for his heroism
THE PARLIAMENTARY REVIEW
Review of Parliament
64 | REVIEW OF PARLIAMENT
from entering the UK altogether. His comments about Muslims, among others, had led to an online petition for him to be considered a ‘hate preacher’ and therefore banned from British soil. Even those who supported the motion knew there was little chance of such a ban being implemented. But few would have suspected that, just 13 months later, Parliament would be discussing the appropriateness of a state visit from President Donald Trump.
One of the first acts of the new US President was to order a blanket ban on people from a list of Middle Eastern countries travelling to the US. In the Commons, the former Labour Leader, Ed Miliband, and the Conservative, Nadhim Zahawi, joined forces to ask the Speaker for an emergency debate – and it was held that day.
Mr Zahawi, born in Iraq to Kurdish parents, arrived in the UK as a nine-year-old refugee from Saddam Hussein’s regime. He is now a British citizen, but because he was born in Iraq, he believed he came under the Trump ban.
He told MPs his place of birth already meant he had been required to go through an interview at the US embassy, to secure the right to travel to America, under rules imposed by President Obama. But the new restrictions were much tougher.
The US Government has since clarified that people with British passports will not be affected by the ban, whatever the country of their birth, but Mr Zahawi still thought the ban was ‘wholly counterproductive’. He described how it was already being used by pro-Islamic State social media accounts as ‘clear evidence that the USA is seeking to destroy Islam. They have even called it the “blessed ban”’.
Labour’s Yvette Cooper, who chairs
the Home Affairs Select Committee,
was ‘deeply worried’ that the
Government had already invited
the new President to make a state
visit to Britain: ‘It will look like an
endorsement of a ban that is so
morally wrong and that we should be
standing against.’
The Conservative, Sir Simon Burns,
disagreed: ‘I think it is absolutely right
that the British Government continue
the work of the Prime Minister to
build bridges with President Trump so
that we can, through engagement,
seek to persuade him and to minimise
or reduce the danger of his more
outrageous policies ... I believe that
very little would be achieved by
cancelling a state visit to which the
invitation has already been extended
and accepted.’
The emergency debate was on a formal
motion that MPs had ‘considered’
Donald Trump’s travel ban, so no call
for a policy change was voted on.
Nadhim Zahawi MP strongly criticised the Trump administration’s travel ban on certain Muslim countries
from entering the UK altogether. His comments about Muslims, among others, had led to an online petition for him to be considered a ‘hate preacher’ and therefore banned from British soil. Even those who supported the motion knew there was little chance of such a ban being implemented. But few would have suspected that, just 13 months later, Parliament would be discussing the appropriateness of a state visit from President Donald Trump.
One of the first acts of the new US President was to order a blanket ban on people from a list of Middle Eastern countries travelling to the US. In the Commons, the former Labour Leader, Ed Miliband, and the Conservative, Nadhim Zahawi, joined forces to ask the Speaker for an emergency debate – and it was held that day.
Mr Zahawi, born in Iraq to Kurdish parents, arrived in the UK as a nine-year-old refugee from Saddam Hussein’s regime. He is now a British citizen, but because he was born in Iraq, he believed he came under the Trump ban.
He told MPs his place of birth already meant he had been required to go through an interview at the US embassy, to secure the right to travel to America, under rules imposed by President Obama. But the new restrictions were much tougher.
The US Government has since clarified that people with British passports will not be affected by the ban, whatever the country of their birth, but Mr Zahawi still thought the ban was ‘wholly counterproductive’. He described how it was already being used by pro-Islamic State social media accounts as ‘clear evidence that the USA is seeking to destroy Islam. They have even called it the “blessed ban”’.
Labour’s Yvette Cooper, who chairs
the Home Affairs Select Committee,
was ‘deeply worried’ that the
Government had already invited
the new President to make a state
visit to Britain: ‘It will look like an
endorsement of a ban that is so
morally wrong and that we should be
standing against.’
The Conservative, Sir Simon Burns,
disagreed: ‘I think it is absolutely right
that the British Government continue
the work of the Prime Minister to
build bridges with President Trump so
that we can, through engagement,
seek to persuade him and to minimise
or reduce the danger of his more
outrageous policies ... I believe that
very little would be achieved by
cancelling a state visit to which the
invitation has already been extended
and accepted.’
The emergency debate was on a formal
motion that MPs had ‘considered’
Donald Trump’s travel ban, so no call
for a policy change was voted on.
Nadhim Zahawi MP strongly criticised the Trump administration’s travel ban on certain Muslim countries
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