Reflex & Allen UK (R&A UK) is expanding its operations in Bodelwyddan by relocating into much larger premises on the former Hotpoint site – a key element of its growth strategy to double turnover to £80million within five years.
The Italian owned company currently operates from a 70,000 sq. ft. facility on Kinmel Park Industrial Estate, which is close to full capacity. Under the deal signed with the Welsh Government it will now buy the 170,000 sq. ft. unit that is being created by dividing the former Hotpoint factory into two detached units.
The exchange of contracts marks the launch of project RAUK2020 –a five year expansion programme to grow the business, target new markets and double turnover. The £4million investment by R&A UK has already created 35 new jobs and will safeguard a further 50 jobs. The move is being supported by the Welsh Government with £1.2million of business finance towards fit out costs and jobs.
Welcoming the news, Economy Minister Edwina Hart said: “R&A is a very important employer in the area and I am pleased the Welsh Government was able to provide a property solution to enable the company to expand in Wales. This is a significant investment by the company and a strong commitment to its long term presence in North Wales.
“I am also delighted to hear the company plans to diversify into new markets and create more jobs in the future. The Welsh Government is investing to create an environment for business growth and bringing the former Hotpoint site back into employment use will create new opportunities for inward investment and expansion projects.”
R&A UK, which employs 280 people, design and manufacture pneumatic and hydraulic tubing, electrical cable and formed tube assemblies mainly for large trucks and engine manufacturers. Its main customers are Cummins, Paccar Group, Volvo & Renault Trucks, Scania & MAN Trucks.
Its expansion plans will not only secure the company’s long term future in the region but enable it to diversify into the car market and grow the business further.
Managing Director Gabriele Da Re said: “This is a strategically important investment for our Group and a confirmation of the confidence the R&A Group has in the Welsh facility. The size of our current site is restricting further development and growth so it was vital to invest in larger premises and funding from the Welsh Government was a decisive factor in enabling this to go ahead. We have plans to expand the business, make inroads into the passenger car market in the UK and our target is to double turnover at our Welsh site within five years to £80million.”
Renzo Gibellini, Reflex & Allen Group’s CEO & Founder said : “The Group is maintaining its fast pace, a key element together with our ideas and execution, that are the core principles that will continue to light the way. R&A UK, one of the most important facilities in the Group, has been at the forefront of this strategy. The next acquisition in Brazil and the RAUK2020 project are the two most important and amazing challenges within our Group. My UK team knows exactly what I expect from them in the next 5 years and I am sure – once again – they will succeed”.