Icon Plastics secures Tees jobs with £200k investment

A £200k investment package from UK Steel Enterprise has enabled a precision injection moulding company to purchase new premises that will keep its manufacturing base in Teesside and secure valuable skilled jobs.

Icon Plastics Ltd will move into its own premises in Stockton-on-Tees before the end of the year on a two acre site that gives them scope for continued expansion.

The alternative to purchasing new premises would have seen the company downsize and outsource most of its manufacturing abroad. Now the jobs of the existing 32-strong workforce are secure and at least a further 10 jobs are expected to be created within the next two years.

The investment from UK Steel Enterprise, the Tata Steel business-support subsidiary, is made up of a £100,000 loan and a £100,000 grant from UKSE’s Access to Finance scheme which is backed by the government’s Regional Growth Fund. The company is also receiving financial support from its bank HSBC and the Tees-based business law firm Endeavour Partnership advised on the acquisition of the new premises.

Peter Taylor, Area Manager for UK Steel Enterprise, said: “We have every confidence in Icon Plastics’ future. Our aim is to improve the economies of areas affected by changes in the steel industry by supporting businesses that can create jobs and wealth. We are delighted that our investment is keeping this impressive company firmly rooted in Teesside, enabling it to expand and create jobs and skills for the region.”

Icon Plastics has diversified steadily in recent years and now has customers in sectors that include automotive, agricultural, health, construction, defence and electronics providing services that include prototyping and product design. It has grown significantly in the past five years - trebling its staff, doubling its machine capacity, developing new products and increasing its profits year on year.

“We are in a very competitive market,” said Managing Director Gareth Thomas who bought the company in 2008. “Moving into new markets and tailoring our service to individual clients, such as assembling components to provide the customer with a finished product, as well as investing in training have been key to our growth.

“This investment is hugely important as we could not have purchased these premises without it. The alternative was to downsize and outsource our manufacturing abroad but now we can secure and create jobs here.

“We have a strong management team that includes our Operations Director Philip Walker and immediate plans to further strengthen the team include appointing a new Sales Manager and creating apprenticeships. The new Sales Manager will concentrate largely on developing the UK market although we also export throughout Europe and send moulded parts to China.

“We have had a difficult time with premises in recent years so it will be a relief to be securely settled in our own factory with room for expansion. It has taken a huge weight off our shoulders and we are very grateful to UK Steel Enterprise, HSBC and everyone else involved,” he added.

Peter Harvey of HSBC, which has a long-standing relationship with the company, said: “Gareth Thomas has grown his business very successfully and has now taken on the challenge of investing for the future. This project has been a collaborative effort with the parties involved supporting the company with either funding, from UK Steel Enterprise and HSBC, including more than one stream of Regional Growth Fund finance, or with the legal and property advice it needed.”

Simon Wake, Managing Partner at Endeavour Partnership, which provides commercial legal services to businesses across Teesside and beyond, said: ““It has been a pleasure working with Gareth and his funders to secure premises that will enable him to continue the growth of Icon Plastics. This deal was a real collaborative venture, with everyone pulling together to achieve the result in the right timescale for the business.”

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