A leading manufacturing company in Coventry is investing in a £6 million machine from Europe and leasing new premises after receiving funding from a Government project to help grow the economy.
Kautex Unipart, which makes over 640,000 fuel tanks annually for BMW, Honda and Jaguar Land Rover, was among ten projects approved by the Coventry and Warwickshire Local Enterprise Partnership (CWLEP) to receive grants from round two of the Growing Places initiative.
The manufacturer has ordered a twin-sheet Next Generation Fuel System machine from Germany to support Jaguar Land Rover’s growth in the UK which will be housed at its base in Renown Avenue, Canley, after receiving a helping hand from Growing Places.
The investment means around 45 of its 300-strong workforce will be moving to new leased premises in nearby Torrington Avenue in October to continue the assembly of fuel systems for Jaguar Land Rover.
Gordon Newton, financial controller at Kautex Unipart, said the new machine would allow components to be placed inside fuel tanks more effectively for Jaguar Land Rover vehicles.
“Jaguar Land Rover is continuing to grow and they have a need for increased volume and new expertise which helps them to improve the technology of their vehicles,” he said.
“A fuel tank is much more complicated than you may think and doesn’t just contain fuel. There are a number of components that are enclosed in the fuel tank such as valves and fuel lines. This new machine allows these to be placed in areas that are not possible with traditional blow mould machines.
“We’re going to bring the first machine to the UK of its type costing £6 million towards the end of this year which will take three months to build and commission so it will be up and running by spring 2014.
“More space is needed for the new machine so we’re moving some operations from Renown Avenue and transferring around 45 staff to new premises in Torrington Avenue.
“There will be an additional £1.6 million investment to make the necessary fit-out to the building and bring in logistical equipment.
“We are really proud and pleased to be associated with Jaguar Land Rover because they are a great success story and as they grow, we grow.”
Gordon said the Growing Places funding had played a key part in Kautex Unipart deciding to go ahead with its investment plans.
He added: “The company and the board is really pleased with the support that Growing Places has been able to offer to us to bring new technology to the UK.”
Cllr Lynnette Kelly, Cabinet Member for Business, Enterprise and Employment at Coventry City Council and CWLEP board member, said the Growing Places grants were making a real difference to innovative companies who had successfully applied for funding.
She said: “Kautex Unipart is a prime example of a go-ahead manufacturing company based in Coventry whose expertise and innovation is helping the sub-region build on its world-class reputation in the automotive sector.
“To be investing in the only machine of its kind in the UK underlines its commitment to its customers and that it is leading the way in the sector.
“It is great that companies awarded Growing Places funding via the CWLEP are making a noticeable difference within Coventry and Warwickshire by boosting the economy.”
