mach-oct-01-07-p047_loneStar.qxp:MY_20070301 28/9/07 15:13 Page 47 SUB-CONTRACT MANUFACTURING Going global in Leeds The booming global oil and gas industry is driving UK business activity as Andrew Allcock discovered on a visit to Leeds Celebrations at the opening of the new Lone Star facility. Inspirational businesswoman Michelle Dewberry with managing director Tony Sitek he pursuit by Texas, US-based Lone with a sales revenue of approximately Sealing Technologies and from that point T Star Fasteners to expand its operations £80 million and employing some 800 we worked very closely together. has most recently resulted in the opening people worldwide. “In 2005, the majority of Lone Star of the new Lone Star factory in Leeds, this Indeed, the Lone Star group of equity was acquired by $250 million following UK-based acquisition/merger companies claims to be one of the largest private equity fund Trinity Hunt, Dallas, activity. In a City more used to reading of its kind supplying into the oil and gas, Texas. This subsequently allowed Lone about manufacturing contraction, the and power generation industries. The Star to go out and acquire other opening of this new unit in August this main competences of this global group businesses, of which the first were my year was a much-celebrated event. are fasteners, industrial gaskets, precision Grange companies, in June of last year. The opening of this new unit was machined parts and industrial coatings. This gave Lone Star a footprint in the marked by the unveiling of a plaque by eastern hemisphere. We actively started Leeds Deputy Lord Mayor, the Reverend COMBINATION OF STRENGTHS to look for new premises and this site in Alan Taylor, and local inspirational Lone Star LWD Precision Engineering Airedale Industrial Estate was chosen. But businesswoman Michelle Dewberry (of managing director Tony Sitek explains in February, the acquisition of LWD The Apprentice fame). recent events: “I had two companies in Engineering, Elland Road, Leeds, was Together employing 104 people, Lone the UK, both called Grange, one a gasket completed by Lone Star and a second, Star LWD Precision Engineering and Lone company, the other a precision adjacent unit at this site was taken on to Star Grange are located at the new engineering company. In 2004 I house this and the Grange metalcutting 35,000 ft2 building in Airedale Industrial established a joint venture in the US with activities.” Estate, Leeds. They part of a global group Lone Star Fasteners, called Lone Star Remaining at Elland Road is the www.machinery.co.uk • October 2007 47 mach-oct-01-07-p047_loneStar.qxp:MY_20070301 28/9/07 15:14 Page 48 SUB-CONTRACT MANUFACTURING In addition to a £400,000 investment in buildings, Lone Star has also spent a further £500,000 on machines and inspection equipment. And there’s more investment to come company’s surface treatment/coating facility has been £400,000 just for the there is another UK company possibly plant. building, a further £500,000 has been joining the group in the near future In April this year, the UK’s PRD invested in new machines – taking in a which would also provide a new home Holdings, based in Wolverhampton, Doosan VTL and the Dah Lih machining for the existing Elland Road surface merged with Lone Star Fasteners to centre (both supplied by Ward Hi-Tech), coatings business. create what Mr Sitek suggests is the representing £350,000, with a further “Being majority owned by a private world leader in the manufacture and £60,000 taken by a Mitutoyo CMM. equity company, growth is our number supply of industrial fasteners. Speaking at the official opening, Mr one goal. To get us to where we want to Over half of the group’s £80 million Sitek spoke of further investment, but be, yes, we could do it by organic growth, turnover is derived from the oil and gas this will be customer-drive. “Our but it would take a lot longer than if we industry, with the vast majority sold to customers here today are telling us that make good, strategic, sensible the energy industry taking in refining, they would like us to be able to handle acquisitions. We want to buy companies chemical plants, power generation plants longer parts, so we may look at a new that make sense. Our biggest customer and heat exchanger manufacturers. CNC lathe with 3 m bed length, for globally is Cameron, which, in fact, is why Lone Star, Leeds, is involved in the example.” And he added that the Lone Star and PRD came together: each manufacture of gaskets and seals (the forecasts for the oil business are “brilliant, was looking at the other’s geographical previous Grange part of the business) in with 2008 looking to be a bumper year”. markets, so a merger made sense.” both soft materials and metals, plus the He said that his customers already have The growth strategy for £12 million machining of precision metal orders going into 2009 and that the turnover Lone Star in Leeds is for it to be components, for the global energy general consensus is that business will be a £20 million business in 2010. While industry (the previous LWD Engineering “very, very, very good” in 2008/9/10. finance for investment and acquisition operation) – gates for gate valves But under consideration right now is are available, another important factor, represents half of this business. waterjet profiling which will offer what that of people, is presenting a challenge The surface treatment/plating activity, Mr Sitek describes as “an innovative with it getting more and more difficult to also previously part of LWD, is still approach to expanding our capacity”. find the right people due to competition currently located in the old LWD for skills in the area from large companies premises in Elland Road, Leeds, while JUST THE BEGINNING like Cameron or Sulzer, reveals Mr Sitek. another unit at Lenton Road, Leeds, “PRD and Lone Star have only been The company is considering introducing houses the company’s turning machinery, together a few months and it is still very an apprenticeship scheme to help counter the Airedale Industrial Estate being early days for the opportunities that the this, and the bright new premises are part focused on prismatic machining and merger offers,” said the managing of making the company more attractive, grinding. director. The acquisition journey is still both to prospective employees and to its The investment made in the new very active, he confirmed, adding that customers.■ October 2007 • www.machinery.co.uk 48.