Member Article

Packaging firm targets £15 million turnover after 70,000 sq ft expansion

A corrugated packaging firm which boasts Sky Sports and Disney among its impressive client list has expanded its premises and targeted to double turnover to £15m.

Tyne Tees Packaging (TTP), based on Heighington Lane Business Park in Newton Aycliffe, has become one of the largest independent manufacturers of corrugated packaging in the North East since it was founded by managing director Gerard Wiper in 1982.

He started the company with a 5,000 sq ft operation on Aycliffe Business Park and doubled premises two years later.

Now after moving into a 70,000 sq ft unit opposite its previous site on Grindon Way, TTP has set an ambitious target to double turnover from £7.5m

Its new operation includes investment in the latest machinery which will allow the business to remain competitive while diversifying its client base.

Operations manager Mark Barron said: “We have relocated several times but that has always been because we have outgrown premises. This time is no different. To move the company forward, we need to bring in new machinery and expand capacity to grow even further over the next decade.

“Everything is much more competitive these days so we constantly have to look at how we improve efficiency to get things moving through the plant quickly and we can only do that by investing in new technology.”

Being ahead of the game with the latest machinery, an experienced workforce of around 50 and a keen focus on customer service, is what has kept the business ahead of the game in recent years.

Many customers have been there since the early days but the order book continues to grow with 25 new clients this year alone and turnover expected to exceed £8million next year.

Mark added: “We now have a fantastic operation with design, production, warehousing and logistics all on one prime location. It’s the most exciting time there has ever been for this business.

“Realising the potential for more growth, increasing turnover and generating more profit are all exciting challenges. Can we increase turnover to more than £15million? Well, if we have the right team in place at the right time and with the right machinery then yes, I am confident we will.”

Location was an important factor in TTP’s move with the business determined to stay true to its Aycliffe roots.

Having its own logistics division and fleet of vehicles so close to the A1 has served the business well, with most of its Scottish borders to Humberside catchment area accessible within a couple of hours.

Mark added: “We have seen a lot of changes here and unfortunately many businesses are long gone. But Hitachi will certainly make people sit up and take notice. It will attract a lot of businesses back to Aycliffe and everybody needs packaging so hopefully we can benefit from that.”

But despite the positive outlook, TTP appreciates the challenges that lie ahead. The packaging sector is a competitive one, with not just independents, but merchants and large integrated operations populating a crowded marketplace.

With quality, reliability and a bespoke design service as key drivers for TTP, efficiency needs to be at its upmost for the business to compete on price.

“One of the challenges is certainly competition particularly manufacturing costs and raw materials which we have to absorb,” explained Mark.

“That is why investing in new technology gives us a competitive edge. It lets us produce a better product at a faster rate. It safeguards the work we already have in place but lets us become even more successful when winning contracts and tenders.”

And more work means more staff.

Mark added: “If you are investing in the best technology, you still need people to operate it. It’s specialised machinery which is labour intensive so we need a steady stream of new staff who can be trained up.

“But as we have grown consistently over the past four or five years, I see no reason why that won’t continue. It’s an exciting future for TTP and all the staff are looking forward to our continued growth.”

For more information about TTP call 01325 311114 or visit www.tyneteespackaging.co.uk

This was posted in Bdaily's Members' News section by Martin Walker .