AN engineering firm has won £50,000 backing to expand its business as it moves into making equipment for use in machines in areas where there is a risk of explosion.
Industrial Motors and Gears (IMAG) was launched in a small office near Redcar eight years ago and built up its business dramatically since it moved into much larger premises in South Bank nearly three years ago.
Its turnover has been rising by up to 30% a year to £750,000 as it wins more customers for its industrial motors and gear boxes in the chemical industry centres of Teesside.
And the £50,000 grant from UK Steel Enterprise is being pumped into training and equipment so it can make more flameproof gear which can be used in hazardous areas.
“Everyone is affected by the recession to some degree, but we are lucky in having a solid base of loyal customers from different sectors, including the chemical industry, and that has helped to cushion the effect on us,” said Paul Worthy, who founded the business with Neil Waddington.
“We decided to be pro-active and have invested in equipment, training and acquiring ISO 9000.
“We have also increased our marketing effort and looked at costs to make sure we are operating at maximum efficiency. “Fortunately, when we moved into these premises on South Bank in 2007 we gave ourselves room for expansion and are now using all the space available for our eight-strong team of technicians and the additional equipment.”
Mr Worthy added: “Repairing equipment in these environments is a specialised job covered by the ATEX regulations.
“We saw the potential for us in that market as some of our existing customers already needed those services and it will also take us into new areas such as the petrochemical, pharmaceutical and offshore oil industries.”
Most of IMAG’s customers are in the UK although contracts have also come from Ireland, Norway, Kenya, South Korea and France.
“We have a long-standing relationship with UK Steel Enterprise as the company began in a small workshop at their Innovation Centre in Redcar,” said Mr Worthy. “We were able to grow there in a supported environment until we were ready to move into our own, larger premises.
Source: The Journal May 25 2010
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