The first stage of a major new £27m manufacturing facility commenced in Oldbury this week with a ceremony to mark the start of construction. Representatives from Sandwell Council and Steel & Alloy Processing Limited were joined by colleagues working on the Popes Lane project to launch the construction phase.
Previously owned by Sandwell Council, the Popes Lane site has been brought forward by leading Midlands commercial developer, Trebor Developments, to create a scheme specifically designed for Steel & Alloy’s operations as a key supplier to the automotive industry and which represents a major expansion for the firm’s existing operations in the Black Country.
The first phase of the project will involve the construction of a new factory to house state of the art steel processing equipment with some 50 jobs to be based at the site. Representatives from Steel & Alloy’s parent company, Gonvarri Steel Services, travelled to Oldbury from Madrid to attend the event.
Steel & Alloy and Trebor have selected locally-based contractor, A&H Construction, to deliver the building and which is programmed to be operational in November 2017.
Mark Cooper, Managing Director of Steel & Alloy Processing Ltd, said: “Our main facility in West Bromwich is at full capacity and this significant investment demonstrates the confidence that our parent company, Gonvarri Steel Services, has in the UK business. It will allow us to develop new processing technologies and materials to meet the ever increasing demands of the UK Automotive Industry and secure the company’s position as the leader in the field.
It is great to have found a new site so close to our existing operations and we are grateful to both the Council and the Department for International Trade for their support in getting us to this stage.”
Councillor Steve Eling, Leader of Sandwell Council was present to witness the ceremony and commented : “It is encouraging to see significant investment from Steel and Alloy coming into Sandwell. The borough offers businesses wishing to expand and grow a chance to move to an area at the forefront of cutting edge manufacturing with established supply chains and a highly skilled workforce.
The investment and new jobs being created by Steel & Alloy Ltd are very welcome and is further demonstration of Sandwell and the Black Country being at the heart of UK manufacturing”.
Bob Tattrie, Managing Partner at Trebor Developments LLP, said: “It is great to see work start on site so swiftly after agreeing the deal with Steel & Alloy in the Autumn and us taking the scheme through planning and site preparation with the support of the Black Country Local Enterprise Partnership. This is a high profile scheme for Sandwell and will be seen as a great vote of confidence for Midlands manufacturing”.
International Trade Minister, Mark Garnier said: “This major investment is great news not just for the West Midlands and the Midlands Engine region, but for our world-leading automotive industry as a whole. Not only will this new factory create local jobs but it will boost the UK’s supply chain, which is vital to the success of the sector.
“The Department for International Trade helped Steel & Alloy secure this investment, and we will continue to support UK businesses up and down the country as they showcase the very best of British engineering and manufacturing to the rest of the world.
“The UK is open and ready for business, and as part of the recently launched Industrial Strategy, the government is committed to improving growth and productivity across the whole country.”
The Black Country LEP has supported the project via the Growth Deal investing £54k in site investigations for the Popes Lane site.