automotive sector in tees valley

A place to grow your automotive business

Tees ValleyInvest in

Tees Valley Automotive

Invest in Tees ValleyTees Valley and the North East region has everything it needs to sustain, grow and develop businesses in the automotive industry. You just need to look around to see who is already here to see the success of this growing sector.

With government backed funding, support agencies such as Tees Valley Unlimited, and a wealth of engineering skills and expertise, Tees Valley is home to some of the best and most productive facilities in the UK. The area is innovative and forward thinking, helping it to maintain its position at the leading edge of developments in this sector.

Tees Valley holds a number of competitive advantages which have helped attract £1.3 billion of capital investment since 2011.

April 2014Nifco opens new £12 million manufacturing facility and Powertrain and R&D plant

June 2014Darchem opens new £8 million thermal insulation manufacturing facility

September 2014ElringKlinger opens new £10 million facility

June 2015Nifco announces plans for a 3rd factory, boosting staff numbers to 800

July 2015Cummins’ Low emission bus engine production switches from China back to Darlington

Why Tees Valley should be your next moveManufacturing skills baseThe heritage and expertise of the manufacturing and engineering sector in Tees Valley is world renowned and continues to thrive and innovate

Skilled and affordable workforceTees Valley has a ready skilled labour force which is one of the most affordable and value for money in the UK. Wage rates are around 10% lower than the rest of the UK, but with overtime hours higher than any other part of the UK and low staff turnover rates you get access to a loyal, hardworking and highly skilled workforce.

Cost competitive locationTees Valley has some of the lowest operating costs in the UK with rents, rates and terms

around half that of major cities and a quarter of those in London and the South East.

Access to international marketsMajor engineering companies in Tees Valley export their products around the world with our excellent infrastructure, including one of the UK’s leading ports, the quickest road connections in the UK and a growing international airport.

Support and fundingTees Valley Unlimited is here to advise on recruitment, skills, training and locating the best property to suit your needs. With an Enterprise Zone offering reduced taxes and financial incentives, as well as significant success with the Regional Growth Fund, the area is recognised by investors as the place to be.

Recent successes include:

Tees Valley Automotive 3

The North East’s Automotive IndustryTees Valley and the wider North East region is home to a number of global automotive manufacturers across all of the key market sectors, many of which are already located in Tees Valley.

Components

Aftermarket

Motorsport

Off-RoadCommercialVehicles

PassengerVehicles

& Parts

AutomotiveSector

Segments

Darchem Engineering

Cummins in Darlington employs over 600 people in the manufacture of engines to over 2000 differing customer specifications. The present range of engines for automotive use is the four and six cylinder 4.5/6.7 litre ISB and 8.9 litre ISL engines. Darlington is also home to Cummins Emissions Solutions who develop, test and manufacture a range of emission filtration / after-treatment and exhaust catalyst systems in a laboratory environment. The success of the plant is evidenced by the re-shoring of production of the Euro 6 four cylinder ISB engine back from China to Darlington which takes effect in late 2015, boosting annual production by an extra 1000 units.

Who’s here?Some of the sector’s major global players have already chosen the North East to locate their business. From passenger car manufacturers to heavy off-road vehicles, the area is host to a number of world-class OEMs and tier-one suppliers. With some of the most efficient production facilities in the world, the North East has proven that it has the skills, assets and public sector support to continue growth of the North East’s automotive industry.

Operating from two sites in the Tees Valley, Caterpillar Skinningrove uses TATA steel to manufacture over 700 variations of track shoes for CAT excavators and tractors serving sister plants in France, Belgium, Brazil, China, Japan and the US. There is currently significant investment at the Skinningrove facility with a project that will give the capability to produce larger product ranges for the organisation.

Caterpillar Stockton cuts, welds and machines major fabrications for Caterpillar Leicester. Over 200 people are employed at the Stockton base. Caterpillar has its global centre for the production of articulated trucks in Peterlee where it employs a further 1,000 people.

Esterline - Darchem Engineering employs 850 people nationally and is headquartered near Stockton-on-Tees. In the high performance automotive market Darchem Insulation Systems concentrates on the design and manufacture of lightweight engineered thermal insulation systems. Darchem design, manufacture, test and install products to the demanding standards required by its major motorsport customers. During the 2014 F1 season, nine out of eleven F1 teams used Darchem’s thermal insulation components. Customers include both “on road” and “off road” manufacturers such as Aston Martin and Volvo Construction Ltd.

ElringKlinger (GB) Ltd is an automotive parts manufacturer based in Redcar employing over 200 people. It is ranked among the top three suppliers worldwide in the respective fields of Specialty Gaskets and Shielding Technology. Clients include General Motors, Ford, Jaguar Land Rover and BMW. ElringKlinger (GB) is the only business in the UK that acts as a volume manufacturer of gaskets and heatshields. In 2014 ElringKlinger (GB) celebrated the final stage of its 50th year by officially opening two on-site investments which include a wind turbine and a 40,000 sq ft factory site extension; the latter increasing the company’s overall production by 50 per cent to meet rising product demand.

Caterpillar

Cummins

ElringKlinger

Esterline – Darchem Engineering


Established in 2002, Icon Plastics is an Eaglescliffe-based precision plastic injection moulding business. Operating from a 27,000 sq ft unit, it has grown its 38-strong workforce by 15% since 2014 and invested over £1 million in capital equipment to secure further business. Icon develops new ideas and prototypes, as well as manufacturing products for sectors including electronics, agricultural, healthcare and medical, construction, defence and automotive. Operating 24 hours five days a week and with 20 moulding machines the company is experiencing growth across a range of sectors, particularly in electronics and LED lighting components.

Katmex is a solely owned UK SME and is part of the Katmex Holdings Group, which also incorporates Maskell Engineering Limited. Katmex focuses on providing steel processed parts and fabricated parts for medium to heavy industry including the off-highway segment. Katmex specialise in supplying the heavy earthmoving and construction machine manufacturers around Europe. Parts supplied are mostly for use in the manufacture of excavators, dumptrucks, backloaders, loading shovels, fork lifts and cranes. Katmex’s operations have the capacity to process 2,500 tons of steel plate per month. Katmex’s main customers include Komatsu UK and JCB UK.

Steel plate processing and fabricationsKATMEX LTD

Millfield Composites has over 30 years’ experience manufacturing component parts using a range of processes and material options including fibreglass (GRP) and other materials such as carbon fibre, natural fibre, PU and DCPD. Millfield offer a full range of services which include 3D computer aided design, tooling, prototyping, medium series production, in house painting and CNC. Holding BS EN ISO 9001:2008 accreditation projects are managed in line with customer requirements such as APQP systems. Clients include major OEM’s such as Caterpillar, Ford Motor, JCB Group, Fairline Yachts and Swift Caravans.

Based near Durham Tees Valley Airport, Paragon specialises in the manufacture of rapid prototypes and low volume components for the automotive, transport and motorsport industry. Paragon works with manufacturers and tier-one suppliers, including Jaguar Land Rover, JCB, Nissan, Bentley, Aston Martin, as well as clients from the world of Formula 1. Indicative of its year-on-year growth, its latest recruitment drive has seen employee numbers reach 50. Known for its exceptional customer service and high quality 3D models, Paragon is now considered many clients’ rapid prototype partner of choice.

Icon Plastics

Katmex

Millfield Composites

Nifco UK

Japanese owned Nifco UK Limited is based in Stockton and is involved in the full spectrum of plastic injection moulding - from research and development, product design, production, through to quality, dispatch and full vehicle lifespan. The company produces plastic components that are used in the engines, interiors and exteriors of cars made by Ford, Honda, Jaguar Land Rover, Nissan, Toyota, and Vauxhall Opel. Currently employing more than 530 people, the business has seen its business grow year on year. In 2012, the company moved to a state of the art facility, Nifco House, and 2014 saw the opening of a second manufacturing facility on the same site. Since 2012, Nifco has invested more than £32 million and has been supported with more than £5 million in grant funding. The business has recently announced a requirement for a third factory by 2017 and plans to employ a workforce of 1,500 by 2025.

Paragon Rapid Technologies

TMD Friction in Hartlepool employs nearly 600 people manufacturing disc brake pads and drum brake linings for passenger cars and commercial vehicles. TMD is the largest friction supplier in the world to the on-road automotive OEM’s, serving an extensive range of platforms from the Dacia Logan to the Bugatti Veyron. With the brands Textar, Pagid, Mintex, Don and Cobreq, TMD Friction has a market-leading position in the global replacement parts market. The Hartlepool plant is currently pioneering a new manufacturing process to serve high performance vehicles, a growing and highly lucrative market segment, making it the first aftermarket plant in Europe to adopt this technology.

TMD Friction


Excellent logisticsWith fast flowing roads, excellent rail connections, two airports on the doorstep and one of the UK’s largest ports - Tees Valley is easy to get to and around. The area is well connected to the main arterial road network of the UK.

The A1(M) and the A19 run north south through the region and the A66 runs east west.

These roads ensure Tees Valley is well connected to other major manufacturing centres and major sea ports.

Tees Valley is well placed for supply chain companies to locate and supply to UK based automotive OEM’s and tier-ones. Moreover, its international port and air links as well as rail connectivity are strong credentials to underpin import and export requirements.

Scotland

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Excellent access to the UK’s OEM and engine manufacturing plants

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Northern Ireland6. Wrightbus

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Midlands

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7. Leyland Trucks

8. Jaguar Land Rover

9. Vauxhall

10 Bentley

13. LTC

14. Toyota




18. Morgan

19. Dennis Eagle

20. MG Motor

21. Aston Martin

22. BMW

11. Toyota

12. Ford

24. Honda

25. MINI

26. MINI

27. Vauxhall

28. Ford

29. McLaren

30. Caterham

31. Alexander Dennis

32. John Dennis Coachbuilders

33. Rolls-Royce

1. Alexander Dennis

2. Nissan

3. Cummins

4. Plaxton

5. Optane

23. Lotus

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Teesport, owned and operated by PD Ports, is the UK’s 3rd largest port by volume, handling over 40 million tonnes each year. Teesport offers strong international connections including many European and Asian ports. In 2015 Teesport started a new roll-on roll-off (Ro-Ro) shipping service from the Port of Tokuyama-Kudamatsu, Japan in 2015. This venture is led by global shipping line K-Line.

Rail freight facilities in Tees Valley are provided by a number of operators including EWS and Freightliner. Providers operate modern rolling stock, and offer connections to all parts of the UK and to Europe via the Channel tunnel.

The rail network provides fast passenger connections and rail freight options for

domestic requirements as well as for import and export requirements. East Coast main line and Grand Central both offer direct passenger routes to London.

Tees Valley is well connected to national and international locations via two international airports, Durham Tees Valley and Newcastle International. Located between Darlington and Stockton, Durham Tees Valley Airport offers daily direct flights to the likes of Aberdeen and Amsterdam (Schipol) allowing connectivity to over 200 additional destinations. Newcastle Airport is approximately 40 minutes from Tees Valley. Flight destinations include USA, London, Amsterdam, Dublin, Germany, Belgium, France, Italy and Spain.

AV Dawson

The 102,263 square foot centre provides a base for steel producers such as Tata to store up to 58,000 tonnes of steel coil, which is used to supply Nissan’s vehicle plant in Sunderland.

The energy-efficient centre, which is conditioned by a ventilation system fed by ground source heat pumps, features a rail track running directly into it from Middlesbrough Goods Yard.

AV Dawson holds a minimum of two weeks’ stock, in all grades, gauges and widths to buffer any potential supply problems from Tata’s mill downtime to transport disruption. Nissan places orders with Dawsons 48 hours ahead of need, with confirmation or amendment 24 hours before, for delivery just four hours before the steel is needed on the line (matching the press line production cycle). The steel is used to build models including the new Qashqai and the LEAF electric vehicle; the new Infiniti will also be serviced using this supply chain.

Managing quality steel supply to Nissan Sunderland

In total more than 270,000 tonnes of steel will arrive by rail each year from Tata’s Port Talbot operation in South Wales before being transported by road to Nissan. The investment is the third part of AV Dawson’s £12.5 million expansion masterplan which has enabled the logistics specialist to grow its workforce by more than a third.


Case Study

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ElringKlinger ElringKlinger (GB) is dedicated to supporting students and young people in the region and is keen to continue its work with local colleges and universities to establish a future talent pipeline.

During 2014, ElringKlinger (GB) took on four students from Northumbria University and Teesside University as part of its own ‘Year in Industry’ undergraduate programme. These followed three student placements during 2013. The students were able to use the industrial placements to supplement their degrees in Mechanical Engineering. The company liaised directly with the universities and selected the new recruits following a half day assessment at ElringKlinger’s (GB) plant in Redcar. ElringKlinger is also very active in supporting the recruitment and training of female engineers.

Engineering skills

They have forged strong links with Middlesbrough College and Teesside University in order to encourage more talent into the industry and to inspire female and young engineers alike.

Skilled & available manufacturing workforceThe location of Tees Valley and the transport connections mean that there is a wide catchment of labour on which to draw from and, with wage rates for engineering and technician roles lower than other manufacturing centres, Tees Valley offers a cost competitive location.

With a history of engineering and manufacturing, Tees Valley has a pool of skilled and trained labour for companies in the automotive sector to recruit from. In addition the area has low labour turnover rates and high productivity ensuring companies locating in the area have a secure and highly productive workforce.

Average annual (mean) pay for full-time employment in 2014

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Case Study

Nifco UK

Nifco produces engine and interior parts for Nissan, Ford, Toyota and Jaguar Land Rover among others. During 2014, Nifco added a new Powertrain and R&D plant alongside its existing Durham Lane manufacturing operations. The new investment includes a £750,000 dynamometer that allows Nifco to develop even more advanced parts by rigorously testing products to optimise their performance. More specifically, the dynamometer allows Nifco to run a vehicle engine in laboratory conditions, using a powerful electric motor to provide the resistance normally provided by a car’s weight and drag. Nifco uses the machine to understand how its parts affect any aspect of the engine’s performance, allowing the R&D team to gain more insight and make design improvements. Furthermore, the company has boosted recruitment of skilled engineers capable of developing new products to grow sales.

Powertrain research and development

The Powertrain and R&D plant investment is a significant mark of intent for Nifco, who have funded part of the investment with Regional Growth Fund money, administered with the support of Tees Valley Unlimited. Nifco’s investment demonstrates their continued confidence in serving the UK automotive sector from Tees Valley.

Nissan UK

Nissan’s Sunderland Manufacturing Plant is situated on the north east coast of England, and has been the UK’s largest car producer for the last 15 years. Strong customer demand for Nissan’s industry leading crossover and electric vehicle ranges continue to underpin production output and the success of the Sunderland plant. Nissan employs 6,700 staff and supports 20,000 jobs in the North East’s automotive supply chain.

The plant makes two cars per minute with the Qashqai and LEAF produced on Line 1 and the Juke and Note produced on Line 2. The Nissan plant has produced 8 million vehicles since 1986. Production rates continue to impress, with over 500,000 vehicles produced in each of the past three years. In fact, Nissan accounts for one in three of all cars produced in Britain. £37 million is currently being invested to create an eighth press line at Sunderland where car parts, including doors and bonnets, will be produced for the Qashqai, Juke, Note and all-electric Nissan LEAF vehicles. The new press line is expected to go into production in 2017.

Nissan is also preparing for the launch of the luxuryInfiniti Q30 and QX30, backed by a £250 million investment in a new 25,000m2 bodyshop alongside abigger trim and chassis assembly line. The move will

The UK’s largest car producer

make the hatchback the first European-built Infiniti. Q30 deliveries will start at the beginning of 2016 and three models are expected in the line-up. In June 2015, Nissan announced a further 300 extra jobs linked to the Infiniti investment.

Nissan continues to invest heavily in alternative energy solutions aimed at emission reduction and the development of a low carbon environment. The company also has a design centre in London and a large technology centre in Cranfield Technology Park, Bedfordshire for research and development.


Case Study

Case Study

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The ideal sites with added benefitsThere are a wide range of business and industrial sites available across Tees Valley suitable for small or large scale operations that offer attractive incentives and support services. The sites have access to utilities, port services and logistics and are well connected to offer the perfect infrastructure for any established or growing automotive business.

New investors are able to take advantage of incentives such as Enhanced Capital Allowances on Enterprise Zone sites and investment aid that supports capital investment by large, small and medium sized enterprises.

The Tees Valley Enterprise Zone is made up of 12 sites across Tees Valley and, with

a total area of 423 hectares, it is one of the largest in the UK. Each site offers a combination of reduced taxes, simpler planning rules and a package of financial incentives to encourage businesses to invest in the area.

Four sites have Enhanced Capital Allowances of up to £100 million and simplified planning; South Bank Wharf, Hartlepool Port Estates, New Energy and Technology Park and Wilton International.

A further eight sites have Business Rate Relief of up to £275,000 over five years and are perfect for all levels of the supply chain.


Companies locating to Tees Valley are able to take advantage of a wealth of funding and support, from practical advice on premises and labour, to help applying for grant funding.

which is on hand to give support to companies looking to invest in the area. The services we offer include pre-investment support; advising on sites, recruitment and skills; financial support and post-investment assistance; helping companies contact potential customers and suppliers; and helping to grow their business.

TVU is well connected to a network of specialist organisations in both the public and private sector that can help potential investors grow their business.

Funding and Support for Your Next Move

Tees Valley Unlimited (TVU) is a public-private partnership that is working to develop the Tees Valley economy. We have a dedicated Business Investment Team, with more than 20 years of experience and knowledge,

Tees Valley Unlimited

Our partnersWe work alongside local and national organisations in the automotive sector that will help your business grow to the next level.

automotivecouncilUK


Tees Valley UnlimitedCavendish House

Stockton-on-TeesTees Valley TS17 6QY

T. 01642 524400

E. [email protected] W. www.teesvalleyunlimited.gov.uk

@TVUnlimited @tees-valley-unlimited @TVU_LEP

automotive sector in tees valley

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