A Birmingham manufacturer has fended off a global band of competitors to land a deal worth more than £38 million to supply parts for the new Airbus A350 aeroplane.
Jobs have been secured at Erdington firm Bromford Industries after it won a 10-year contract worth in excess of $60 million – £38.1 million – with global aerospace giant Messier Bugatti Dowty to supply parts for engines and landing gear.
Chief executive Mike Smith, who led a management buyout of the firm in 2009, told the Birmingham Post he planned to invest £2 million on the back of the contract win.
He said: “The value of the contract is worth more than a year’s turnover so obviously that is pretty substantial and that allows us to invest in technology and be more competitive.
“As your paper has reported, a lot of companies have off-shored business in recent years and have now started to on-shore.
“As we have been successful that gives us a platform to invest in the business.
“It was a very competitive bid. We went up against some strong opposition so I am especially pleased we were successful.
“With the win comes substantial investment.”
Mr Smith said it was too early to say whether the deal would lead to new jobs, but it certainly provided more security to the firm.
He added: “The contract win is obviously very new so I can’t comment on future employment, but as you win contracts there is normally an impact.
“There are 120 people employed in the Birmingham facility, which is where most of the product will be manufactured, as well as our facility in Leicester.”
Mr Smith said the longevity of the contract offered security to the business.
Latest accounts filed at Companies House show the company turned over £33.5 million in the year to October 2010, an 18 per cent rise year-on-year.
The Post reported in 2009 how Mr Smith, along with well known Midland industrialist chairman John Hudson, completed a management buyout of the company from listed firm Hampson Industries for £23.7 million, backed by Darwin Private Equity.
The firm, which also supplies the likes of Siemens and Rolls-Royce, has since been on the acquisition trail, including three takeovers in 2010, including industrial firm H Beesley in Leicester.
Bromford now operates from four sites across the Midlands region in Birmingham, Leicester and Alcester, and has around 300 employees.
Mr Smith added: “Bromford Industries has a historic relationship with Messier Bugatti Dowty that has developed over a number of years, and we provide them with innovative engineering solutions using the very latest technology available.
“I am delighted that we have been able to expand on this key customer relationship and look forward to developing this association further over the next ten years and more.”
