At TR we are in a sustained period of growth with FY2016 representing our sixth year of continuous growth.
Continued growth needs investment. Not just in terms of our people but also via capital expenditure in our warehousing, manufacturing capacity and our digital capabilities.
Performance so far
Over the last year, we have invested internationally in our manufacturing. In our Taiwanese site we have extended floor space and invested in new machinery to increase our capacity by 15%. This is already bearing fruit with increases coming through at both the revenue and underlying operating margin levels.
In PSEP, Malaysia, we have invested in a £1m state of the art 6 die/6 blow part former from Japan. This is an extremely high quality piece of machinery that will enable us to manufacture high specification automotive fastenings. Such a substantial investment will give us a competitive edge and allow our own manufacturing to compete at a different level in the marketplace.
In Italy, at VIC. we have invested in additional machinery, building on our manufacturing capacity outside Asia so as to better service customers across the region, most specifically within the domestic appliances sector.
Our investments in Lean-Lift warehousing technology have also helped to drive efficiencies.
Read about Operational efficiencies
Plans for the future
Looking ahead, we continue to see capital investment as a core part of our ongoing strategy for growth.
Specific plans have already been approved for a new heat treatment plant at our Italian site, which will increase our manufacturing capacity in Europe. Without this, product would need to be externally heat treated, increasing manufacturing times, reducing operational efficiencies and effectively limiting future potential capacity investment in the region as a result.
Having already invested in our commercial website and our cyber security, we are also in the process of reviewing our overall digital strategy where we expect to make additional investments over the next few years.
Read about Cyber security