Defence engineering specialists MMEngineering are enjoying record growth as they prepare to relocate to their second home on the Port Talbot Waterfront Enterprise Zone.
Established in 2016 by James Morton and brothers Chris and Martin McDermid, the company has grown by 30% over the last year reaching a turnover of £2.6miliion. This is expected to exceed £3.5 million in 2020/21 with increased customer demand prompting the need for additional space.
An initial loan of £175,000 from the Development Bank of Wales enabled MMEngineering to set-up in a 6,000 square foot unit on Port Talbot Waterfront Enterprise Zone. The company has now signed a new ten year lease for 20,000 square feet. The cost of the move and fit-out is being funded by a £250,000 loan from the Development Bank of Wales. The interest rate of both loans has been reduced by 2% as the business is based in an enterprise zone.
Employing 19 people, MMEngineering designs, manufactures and installs high quality blast and flood defence solutions across the UK and internationally with exports to Thailand, Singapore and South East Asia.
Chris McDermid, Director of MMEngineering said: “The last two-years have been a roller-coaster of a journey as we simply did not know how Covid-19 would impact our performance. Our confidence certainly took a knock last year but with the on-going support of the Development Bank of Wales, we’ve been able to refocus and we’re now busier than ever but lack of space has been limiting our efficiency and ability to grow quicker.
“Staying on the same enterprise zone enables us to benefit from more space with a smooth transition. We also maintain the discounted interest rates which is helpful in terms of reducing the cost of borrowing and lowering monthly payments therefore minimising the impact on cashflow. Of course, we have an existing relationship with the Development Bank but the whole process really has been very quick and straight-forward which is exactly what we needed to be in a position to secure the new unit.”
Donna Williams and Stewart Williams from the Development Bank of Wales support MMEngineering. They said: “MMEngineering has exceeded all expectations over the last few years with a real surge in growth but the business has been physically limited by space.
“With our support, the team can now increase production capacity and deliver on demand; improving efficiency and preparing for the next phase of growth without needing to relocate away from the area. In fact, Port Talbot Waterfront Enterprise Zone is an ideal location given the support available for businesses like MMEngineering as we work withWelsh Government to offer reduced interest rates on our loans by up to 2%.”
