£25m investment to accelerate growth

Speaking at a celebratory event marking excellent progress in the so-called “Unity Project”, which is expected to be completed next year, Spirax Sarco director UK and ROI Marc Eggermont told some 150 assembled guests that the company, which he said now had 49 operations in 34 countries, and a headcount of some 1,200 technical sales and service engineers in direct contact with customers worldwide, was now among the global leaders in all aspects of steam technology. Such technology, which Spirax Sarco argues has an important role to play today in helping its customers reduce their energy consumption and carbon footprint, was, he explained, now used in a wider range of industries than ever, ranging from food and beverage, and oils, and chemicals, to the large steam systems now used in environments like hospitals and other public buildings to economically produce hot water. While in its early days – the company was established in the 1930s – Spirax Sarco specialised in the supply of equipment such as steam traps, control valves, pumps and boiler controls, such were the strides it had made in the past 80 years, Marc Eggermont explained, that it could now advise on, install, commission, maintain, and, where necessary, renovate or refurbish complete steam systems. This would see it take care of anything from the supply of heat exchangers, pump “packages” and steam generators, to undertaking commissioning, trap surveys, and system and energy audits, as well as offering a complete project management service and, if required, expert ongoing maintenance. Also a leading training provider, which ran 35 one and four-day courses last year, and has some 70 courses planned on all aspects of steam technology this year, Marc Eggermont explained that Spirax Sarco was fortunate to be in a position to be able to commit £25 million to its “Unity Project”, at a time when many UK manufacturing businesses were struggling, due both to its “strong business position”, and because of its management team’s determination to further improve customer service and extend its R&D initiatives, as well as to shorten lead times, in the process “stealing market share” from its competitors. After the short introduction from Marc Eggermont, Ian McDuff, the company’s UK supply director, gave more details on the aims of the Unity Project, explaining that the key element was the bringing together of the operations of three existing Spirax Sarco sites onto one consolidated site at Cheltenham’s Runnings Road. He explained: “Prior to the inception of this project we manufactured items such as steam traps and consumables at Runnings Road, produced items such as control valves, meters, and electrical controls at our St George’s Road site, and undertook all machining at our St Mark’s site. By bringing together the various operations at Runnings Road, including on a five-acre site acquired last year opposite our existing buildings, we will significantly improve the flow of materials from order through to dispatch, enhance the layout and configuration of our operations, and be in a position to further drive efficiencies.

Global manufacturing strategy

“We will also, we feel, take our staff to the next stage of their journey in support of our global manufacturing strategy. We we feel that now is the time to use our growing strength and expertise to further improve our competitiveness in the marketplace.” Highlighting Spirax Sarco’s increasing “global reach”, Ian McDuff went on to explain that on the new site (opposite the existing Runnings Road premises, and which was purchased from ADC Krone early last year), the company would be relocating all the machinery from its St Mark’s operation, while all raw materials would now “arrive in one place, rather than piecemeal” at the new site. Components would then move “seamlessly” through two new buildings on this newly acquired site, with a new tunnel, to be built under the road, subsequently being used to transport them to a new assembly and test building, and new warehouse facility, located on the existing Runnings Road site. This facility will, on its completion, co-ordinate dispatch of goods to customers all over the world. In all the project would, Ian McDuff explained, see the construction and renovation of some 20,000 m2 of factory, warehouse, manufacturing, assembly, and R&D space, with a “complete revamp” of the buildings on the current Runnings Road site being complemented by both the construction of a new finished goods warehouse, and a central boiler house. The project will also include development of new assembly stations, renovation of CNC tooling and machining and welding equipment, replacement of the site’s existing electrical distribution system, and installation of new material racking and handling equipment. Existing buildings at Runnings Road will be provided with new roofing and cladding, and fitted with more efficient insulation, while other elements of the upgrade designed to lower the site’s carbon footprint will include the installation of low energy lighting, use of rainwater harvesting, and upgrading of energy management generally. A new “energy centre”, meanwhile, will incorporate over 11,000 m of new steam system pipework, with the facility able to undertake high pressure steam testing of new systems at pressures of up to 120 bar.