£800,000 boost for foundry firm
One of the last remaining Black Country die-casting firms is back has won an £800,000 order that has helped create six new jobs.
Zincast Foundry, founded more than 70 years ago, faced an uncertain year as the global slump sent orders yo-yoing from month to month.
But a £17,000 grant from a Government fund helped the family-run firm try new materials and processes that resulted in the order from the Telford arm of Japanese power tools giant, Makita.
Zincast, which employs nearly 50 people in Strawberry Lane, Willenhall, has taken on another half dozen.
Managing director Paul Heath said: "Like many firms in our sector we have had an uncertain year with sales fluctuating rapidly from month to month. With this in mind, we were keen to look at ways where we could increase our sales through introducing new services and processes and the Automotive Response funding has given us a major boost in achieving this. We have already increased turnover to two million, created new jobs and feel confident of continuing this growth into 2010 and beyond."
The success story was revealed by Regional Minister Ian Austin today, who said it marked an important milestone for the £4.5 million Automotive Response Programme, set up to help vehicle parts firms.
Backed by regional development agency Advantage West Midlands and the European Regional Development Fund, the programme has already given more than £2.3 million to help manufacturers fight their way out of the recession. Mr Austin said: "This funding package is already making a difference to more than 100 companies in the West Midlands and Zincast is a prime example of the business and economic benefits that can be achieved."
Zincast is one of the few remaining West Midland foundries specialising in aluminium and zinc alloy pressure and gravity die casting, making components for the auto, white goods and construction sectors.
Funding has helped it improve efficiency, cut costs and look into the possibility of magnesium casting. This has resulted in work to supply belt sander parts and safety covers for Makita. The firmis also planning to make use of the weak pound to boost its sales overseas.
Mick Laverty, Advantage West Midlands chief executive, said: "Its heartening that companies like Zincast are using this funding to seize new opportunities and I hope many more companies will come forward and also benefit their bottom lines."
