Plumbing, heating and bathroom fittings people Pegler Yorkshire are to invest £12m in their Doncaster factory, bringing in new machinery to improve efficiency and capacity.
The investment will allow the existing rod making facility to be replaced with state of the art equipment and automated machinery. It includes a contribution from the Grant for Business Investment scheme (GBI) of £3m through Yorkshire Forward and the Department for Business Enterprise and Regulatory Reform (BERR). The investment is a significant part of a three-year plan for the Doncaster site. The plan is to have the new facility fully operational by the first quarter of 2010.
The announcement of the investment plans came during a visit to the factory by Minister for Business Pat McFadden (MP) and Minister for Yorkshire and the Humber Rosie Winterton (MP .
Operations managing Director Martin Dowling said, ” It has been very exciting to host a ministerial visit, and to welcome Pat and Rosie to Pegler Yorkshire. The commercial market in the UK was very important for Pegler Yorkshire products, in particular hospitals and the schools programmes. The growth in this markets had partly offset the fall in the housing market. The £3m investment from the government has also been essential, because without it, the new investment would not have been financially viable.”
“A challenging year is ahead for all of us,” he continued, “but with new product launches planned and this new investment, we are looking to offset the worst the recession can throw at us. The next few months may be tough, but with new investment the long term prospects are good – the spirit is excellent and we will succeed.”