Invest in Tees Valley A place to grow your automotive business Invest in Tees Valley Recent successes include:

Tees Valley and the North East region has April 2014 everything it needs to sustain, grow and Nifco opens new £12 million manufacturing facility and Powertrain and R&D plant develop businesses in the . You just need to look around to June 2014 see who is already here to see the success Darchem opens new £8 million thermal of this growing sector. insulation manufacturing facility

With government backed funding, support agencies September 2014 such as Tees Valley Unlimited, and a wealth of ElringKlinger opens new £10 million facility 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, June 2015 Nifco announces plans for a 3rd factory, helping it to maintain its position at the leading edge boosting staff numbers to 800 of developments in this sector.

Tees Valley holds a number of competitive advantages July 2015 which have helped attract £1.3 billion of capital Cummins’ Low emission bus engine production investment since 2011. switches from back to Darlington

Why Tees Valley should be your next move

Manufacturing skills base around half that of major cities and a quarter of The heritage and expertise of the manufacturing those in and the South East. and engineering sector in Tees Valley is world renowned and continues to thrive and innovate Access to international markets Major engineering companies in Tees Valley export Skilled and affordable workforce their products around the world with our Tees Valley has a ready skilled labour force excellent infrastructure, including one of the which is one of the most affordable and value UK’s leading ports, the quickest road connections for money in the UK. Wage rates are around in the UK and a growing international airport. 10% lower than the rest of the UK, but with overtime hours higher than any other part of Support and funding the UK and low staff turnover rates you get Tees Valley Unlimited is here to advise on access to a loyal, hardworking and highly recruitment, skills, training and locating the best skilled workforce. property to suit your needs. With an Enterprise Zone offering reduced taxes and financial incentives, Cost competitive location as well as significant success with the Regional Tees Valley has some of the lowest operating Growth Fund, the area is recognised by investors costs in the UK with rents, rates and terms as the place to be.

Tees Valley Automotive The North East’s Automotive Industry

Tees 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 & Parts

Passenger Motorsport Vehicles Automotive Sector Segments

Commercial Off-Road Vehicles

Aftermarket

Tees Valley Automotive 3 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.

Caterpillar ElringKlinger

Operating from two sites in the Tees Valley, Caterpillar ElringKlinger (GB) Ltd is an automotive parts manufacturer Skinningrove uses TATA to manufacture over 700 based in employing over 200 people. It is ranked variations of track shoes for CAT excavators and tractors among the top three suppliers worldwide in the respective serving sister plants in France, Belgium, Brazil, China, Japan fields of Specialty Gaskets and Shielding Technology. Clients and the US. There is currently significant investment at the include General Motors, Ford, Jaguar Land and BMW. Skinningrove facility with a project that will give the capability ElringKlinger (GB) is the only business in the UK that acts as to produce larger product ranges for the organisation. a volume manufacturer of gaskets and heatshields. In 2014 ElringKlinger (GB) celebrated the final stage of its 50th Caterpillar Stockton cuts, welds and machines major year by officially opening two on-site investments which fabrications for Caterpillar Leicester. Over 200 people are include a wind turbine and a 40,000 sq ft factory site employed at the Stockton base. Caterpillar has its global extension; the latter increasing the company’s overall centre for the production of articulated in Peterlee production by 50 per cent to meet rising product demand. where it employs a further 1,000 people.

Esterline – Darchem Darchem Engineering Engineering Cummins Esterline - Darchem Engineering employs 850 people nationally and is headquartered near Stockton-on-Tees. In Cummins in Darlington employs over 600 people in the the high performance automotive market Darchem Insulation manufacture of engines to over 2000 differing customer Systems concentrates on the design and manufacture of specifications. The present range of engines for automotive lightweight engineered thermal insulation systems. Darchem use is the four and six cylinder 4.5/6.7 litre ISB and 8.9 litre design, manufacture, test and install products to the demanding ISL engines. Darlington is also home to Cummins Emissions standards required by its major motorsport customers. During Solutions who develop, test and manufacture a range of the 2014 F1 season, nine out of eleven F1 teams used Darchem’s emission filtration / after-treatment and exhaust catalyst thermal insulation components. Customers include both systems in a laboratory environment. The success of the “on road” and “off road” manufacturers such as plant is evidenced by the re-shoring of production of the Euro and Ltd. 6 four cylinder ISB engine back from China to Darlington which takes effect in late 2015, boosting annual production by an extra 1000 units.

Tees Valley Automotive Icon Plastics Nifco UK

Established in 2002, Icon Plastics is an Eaglescliffe-based Japanese owned Nifco UK Limited is based in Stockton and is precision plastic injection moulding business. Operating from involved in the full spectrum of plastic injection moulding a 27,000 sq ft unit, it has grown its 38-strong workforce by - from research and development, product design, 15% since 2014 and invested over £1 million in capital production, through to quality, dispatch and full vehicle equipment to secure further business. Icon develops new lifespan. The company produces plastic components that ideas and prototypes, as well as manufacturing products for are used in the engines, interiors and exteriors of cars made sectors including electronics, agricultural, healthcare and by Ford, Honda, Jaguar , , Toyota, and medical, construction, defence and automotive. Operating Vauxhall Opel. Currently employing more than 530 people, 24 hours five days a week and with 20 moulding machines the business has seen its business grow year on year. In the company is experiencing growth across a range of sectors, 2012, the company moved to a state of the art facility, Nifco particularly in electronics and LED lighting components. 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 KATMEXSteel plate processing and fabricationsLTD Katmex by 2017 and plans to employ a workforce of 1,500 by 2025. 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 Paragon Rapid and fabricated parts for medium to heavy industry including the off-highway segment. Katmex specialise in supplying the Technologies heavy earthmoving and construction machine manufacturers around Europe. Parts supplied are mostly for use in the Based near Durham Tees Valley Airport, Paragon specialises manufacture of excavators, dumptrucks, backloaders, in the manufacture of rapid prototypes and low volume loading shovels, fork lifts and cranes. Katmex’s operations components for the automotive, transport and motorsport have the capacity to process 2,500 tons of steel plate per industry. Paragon works with manufacturers and tier-one month. Katmex’s main customers include Komatsu UK and suppliers, including , JCB, Nissan, , JCB UK. 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 Millfield Composites partner of choice.

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. TMD Friction 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 TMD Friction in Hartlepool employs nearly 600 people 9001:2008 accreditation projects are managed in line with manufacturing disc brake pads and drum brake linings for customer requirements such as APQP systems. Clients passenger cars and commercial vehicles. TMD is the largest include major OEM’s such as Caterpillar, Ford Motor, JCB friction supplier in the world to the on-road automotive Group, Fairline Yachts and Swift Caravans. 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.

Tees Valley Automotive 5 Excellent logistics

With fast flowing roads, excellent rail These roads ensure Tees Valley is well connections, two airports on the doorstep connected to other major manufacturing and one of the UK’s largest ports - Tees centres and major sea ports. Valley is easy to get to and around. The area is well connected to the main arterial Tees Valley is well placed for supply chain road network of the UK. companies to locate and supply to UK based automotive OEM’s and tier-ones. The A1(M) and the A19 run north south Moreover, its international port and air through the region and the A66 runs links as well as rail connectivity are strong east west. credentials to underpin import and export requirements.

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

Scotland 1.

Northern Ireland 01 North East 6. 2. Nissan 4.

02 3. Cummins 5. Optane Tees North West 06 Valley 03 7. 04 8. Jaguar Land Rover 9. Vauxhall 05 10 Bentley 07 08

09 10 11 12 14 23 16 15 22 13. LTC 18. Morgan 13 23. Lotus 19 21 14. Toyota 19. 18 20 15. Jaguar Land Rover 20. MG Motor 27 16. Jaguar Land Rover 21. Aston Martin 12 28 26 30 24 25 29 17. Jaguar Land Rover 22. BMW 31 32

23 Wales South 24. Honda 29. McLaren 11. Toyota 25. 30. Caterham 12. Ford 26. MINI 31. Alexander Dennis 27. Vauxhall 32. John Dennis 28. Ford 33. Rolls-Royce

Tees Valley Automotive Teesport, owned and operated by PD Ports, domestic requirements as well as for is the UK’s 3rd largest port by volume, import and export requirements. East handling over 40 million tonnes each year. Coast main line and Grand Central both Teesport offers strong international offer direct passenger routes to London. connections including many European and Asian ports. In 2015 Teesport started a Tees Valley is well connected to national new roll-on roll-off (Ro-Ro) shipping service and international locations via two from the Port of Tokuyama-Kudamatsu, international airports, Durham Tees Valley Japan in 2015. This venture is led by global and Newcastle International. Located shipping line K-Line. between Darlington and Stockton, Durham Tees Valley Airport offers daily direct Rail freight facilities in Tees Valley are flights to the likes of Aberdeen and provided by a number of operators Amsterdam (Schipol) allowing connectivity including EWS and Freightliner. Providers to over 200 additional destinations. operate modern rolling stock, and offer Newcastle Airport is approximately connections to all parts of the UK and to 40 minutes from Tees Valley. Flight Europe via the Channel tunnel. destinations include USA, London, Amsterdam, Dublin, Germany, The rail network provides fast passenger Belgium, France, Italy and Spain. connections and rail freight options for

Case Study AV Dawson Managing quality steel supply to Nissan Sunderland

The 102,263 square foot centre provides a base for In total more than 270,000 tonnes of steel will arrive steel producers such as Tata to store up to 58,000 by rail each year from Tata’s operation in tonnes of steel coil, which is used to supply Nissan’s South Wales before being transported by road to Nissan. vehicle plant in Sunderland. The investment is the third part of AV Dawson’s £12.5 million expansion masterplan which has enabled The energy-efficient centre, which is conditioned by a the logistics specialist to grow its workforce by more ventilation system fed by ground source heat pumps, than a third. 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.

Tees Valley Automotive 7 Skilled & available manufacturing workforce

The location of Tees Valley and the With a history of engineering and manufacturing, Tees transport connections mean that there Valley has a pool of skilled and trained labour for companies in the automotive sector to recruit from. In is a wide catchment of labour on which addition the area has low labour turnover rates and high to draw from and, with wage rates for productivity ensuring companies locating in the area engineering and technician roles lower have a secure and highly productive workforce. than other manufacturing centres, Tees Valley offers a cost competitive location.

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

Assemblers Tees Valley (electrical and electronic products) East Midlands

Plastics process operatives

Assembly staff (vehicles and metal goods)

Production manager

Operations manager

0 5 10 15 20 25 30 35 40 45 50 (£k per annum) Case Study ElringKlinger Engineering skills

ElringKlinger (GB) is dedicated to supporting students and They have forged strong links with Middlesbrough College young people in the region and is keen to continue its work and Teesside University in order to encourage more talent into with local colleges and universities to establish a future the industry and to inspire female and young engineers alike. 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.

Tees Valley Automotive Case Study Nissan UK The UK’s largest car producer

Nissan’s Sunderland Manufacturing Plant is situated on make the hatchback the first European-built Infiniti. Q30 the north east coast of England, and has been the UK’s deliveries will start at the beginning of 2016 and three largest car producer for the last 15 years. Strong customer models are expected in the line-up. In June 2015, Nissan demand for Nissan’s industry leading crossover and electric announced a further 300 extra jobs linked to the vehicle ranges continue to underpin production output and Infiniti investment. the success of the Sunderland plant. Nissan employs 6,700 staff and supports 20,000 jobs in the North East’s Nissan continues to invest heavily in alternative energy automotive supply chain. solutions aimed at emission reduction and the development of a low carbon environment. The company The plant makes two cars per minute with the Qashqai also has a design centre in London and a large technology and LEAF produced on Line 1 and the Juke and Note centre in Cranfield Technology Park, Bedfordshire for produced on Line 2. The Nissan plant has produced 8 research and development. 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 luxury Infiniti Q30 and QX30, backed by a £250 million investment in a new 25,000m2 bodyshop alongside a bigger trim and chassis assembly line. The move will

Case Study Nifco UK Powertrain research and development

Nifco produces engine and interior parts for Nissan, The Powertrain and R&D plant investment is a Ford, Toyota and Jaguar Land Rover among others. significant mark of intent for Nifco, who have funded During 2014, Nifco added a new Powertrain and R&D part of the investment with Regional Growth Fund plant alongside its existing Durham Lane manufacturing money, administered with the support of Tees Valley operations. The new investment includes a £750,000 Unlimited. Nifco’s investment demonstrates their dynamometer that allows Nifco to develop even more continued confidence in serving the UK automotive advanced parts by rigorously testing products to optimise sector from Tees Valley. 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.

Tees Valley Automotive 9 The ideal sites with added benefits

There are a wide range of business and a total area of 423 hectares, it is one industrial sites available across Tees Valley of the largest in the UK. Each site offers a suitable for small or large scale operations combination of reduced taxes, simpler that offer attractive incentives and support planning rules and a package of financial services. The sites have access to utilities, incentives to encourage businesses to port services and logistics and are well invest in the area. connected to offer the perfect infrastructure for any established Four sites have Enhanced Capital or growing automotive business. Allowances of up to £100 million and simplified planning; South Bank Wharf, Hartlepool Port Estates, New Energy and New investors are able to take advantage Technology Park and Wilton International. of incentives such as Enhanced Capital Allowances on Enterprise Zone sites A further eight sites have Business Rate and investment aid that supports capital Relief of up to £275,000 over five years investment by large, small and medium and are perfect for all levels of the supply sized enterprises. chain.

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

Tees Valley Automotive Funding and Support for Your Next Move

Companies locating to Tees Valley are which is on hand to give support to able to take advantage of a wealth of companies looking to invest in the area. funding and support, from practical The services we offer include advice on premises and labour, to help pre-investment support; advising on sites, applying for grant funding. recruitment and skills; financial support and post-investment assistance; helping companies contact potential customers Tees Valley Unlimited and suppliers; and helping to grow Tees Valley Unlimited (TVU) is a their business. public-private partnership that is working to develop the Tees Valley TVU is well connected to a network of economy. We have a dedicated Business specialist organisations in both the public Investment Team, with more than 20 and private sector that can help potential years of experience and knowledge, investors grow their business.

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

automotive council UK

Tees Valley Automotive 11 Tees Valley Unlimited Cavendish House Stockton-on-Tees Tees Valley TS17 6QY T. 01642 524400

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