Faerch has announced plans to open a state-of-the-art manufacturing facility in the UK. A large part of our production for the UK market will be moved to the new plant which will be located in Durham in the North East as part of an on-going strategy to secure costs, improve efficiencies and minimise environmental impact.
We have acquired 14,000 square metres of factory buildings with a view to starting production in the summer of 2012. This key move will help improve operating efficiencies and further strengthen the overall service provided to our rapidly expanding UK customer base.
“In the future, part of our sales in the UK market will be produced at the factory in Durham. The products in question are primarily trays used for ready meals and fresh meat,” says CEO Lars Gade Hansen.
“Faerch has also acquired a plot adjacent to the new factory, and as a consequence we now have 30,000 square metres of industrial site at our disposal in Durham. This will allow for the possibility of further expansion as demand increases. This significant investment is part of Faerch’s long term strategy of being close to its customers, which means that, among other things, we can achieve a high level of supply security."
Crystallised PET (CPET)
Faerch currently controls a large part of the UK market for crystallised PET (CPET), a recyclable and opaque PET resin with a structure that makes it stable over a wide range of temperatures (between minus 40 and 220 deg C). It also provides a high barrier against oxygen, water, carbon dioxide and nitrogen.
As a result, the plant will manufacture CPET trays initially, which constitute the majority of what Faerch sells in the UK, quickly followed by polypropylene meat trays, and MAPET II containers.
Joe Iannidinardo, MD of Faerch in the UK comments: “We have a great working relationship with our UK partners and the local authorities, and that has proved a great advantage during the planning phase. We have concluded a very good agreement, and we are looking forward to starting up the new plant in Durham. It will bring Faerch even closer to its UK customers.”
The security of having three plants (Denmark, Chech Republic and now Great Britain) is important to the on-going success of Faerch as a company.
Lars Gade Hansen continues: “Finally, the move also means economic security. Over the past four years, we have witnessed a sharp fall in the exchange rate for the British Pound against the Danish Krone. The insecurities this has created for us, as well as for our customers, will be reduced by manufacturing a large part of the plastic packaging in the UK.”
The building that Faerch has purchased was originally part of the Autobar thermoforming business and was most recently owned by Veriplast, a manufacturer of food and drink packaging. The latter has decided to end UK production and re-route its manufacturing to the Netherlands.
There are already some compressors and other equipment in the plant in Durham, including a PP extruder which will be refurbished, but it does require a major upgrade. Over the next six months it will be readied for production, with the installation of new specialised machines for the manufacture of plastics trays, the transfer of equipment from Holstebro and the Czech Republic, as well as the hiring and training of new staff.
The new plant will operate the same high standards as our factories in Denmark and Czech Republic underlined by the appointment of a Quality Manager before
production even starts. Running the facility will be Anders Jensen, a Dane who has been working in the Czech Republic and helped set up the factory there, and Petr Placek, a Czech. Anders will be Factory Manager while Petr will be Technical Project Manager.
Cabinet member for regeneration and economic development at Durham County Council, Cllr Neil Foster, says: “I am really delighted to welcome Faerch to Durham. The company will, I have every confidence, be an extremely useful addition to the city’s international business community."
“I am grateful to everyone involved at the company and the council for ensuring this opportunity to create jobs and business here was able to progress in such a timely way and with minimal difficulty."
“I would like to take this opportunity to wish the company every success.”