A Midland manufacturer has set its sights on European expansion after launching its first overseas operation.
PP Electrical Systems, which employs more than 225 people at its Cheslyn Hay facility, has opened a sales and marketing and technical office in Germany to help it grow orders in the country.
The firm, which specialises in electrical, electromechanical and electronic assemblies and control systems, is looking to build on more than £4.5 million of orders to customers involved in machine tools, food packaging and semi-conductor production.
The new facility in Hamburg is headed up by local manufacturing expert Herr Oliver Bluck and will help to support existing clients, target new markets and provide access to opportunities in Luxembourg and Switzerland.
Managing director Tony Hague said: “When you do business in Germany, you have to show commitment and a desire to build long-term relationships.
“One of the best ways to do this is to become part of the local economy, employ local people and immerse yourself in the way they do business.”
The German operation will initially employ two people with associate engineers brought in to offer technical support on existing contracts.
With industry’s desire to take advantage of total manufacturing solutions and the reduced lead times it gives customers, the company has picked up more than £2 million of new contracts in the last year alone and expects to double that in 2012.
This takes PP Electrical’s direct export sales past 25 per cent of its £24 million turnover, with about 80 per cent of its electronic assemblies and control systems now ending up at an end user overseas.
Mr Hague added: “All of the design and manufacturing stays in the UK and we see operations like the one in Hamburg as a way of giving the customer what they want – direct, on the ground service.
“The German subsidiary may well be the start of many and there is definitely an opportunity for an additional base to explore massive growth in the United States of America.”