Armstrong World Industries Limited is set to invest £2 million to facilitate growth of its Teesside operation after being awarded a Selective Finance for Investment (SFI) grant with the assistance of RHK.
Armstrong World Industries is a subsidiary of Armstrong Holdings Inc, a global leader in the design and manufacture of floors, ceilings and cabinets. The group has 59 plants in 14 countries and approximately 16,500 employees worldwide, with annual sales in excess of billion.
The Teesside plant was opened in 1977 as an operating division of Armstrong World Industries. The 35,000 square metre plant has 184 employees and achieves annual sales in excess of £40 million. The plant has sole responsibility within the group for the production of cushion vinyl flooring, manufacturing 20 different types of residential cushion vinyl in a range of over 500 colours and 226 designs, producing 15.8 million square metres annually.
Armstrong World Industries is leader in the European cushion vinyl market with a 7.0% market share. The company’s strategy for the Teesside operation is to maintain their European market share and penetrate the North America and Far East markets. Management forecasts 10.9% turnover growth per annum.
Keiron Russell, UK HR Director at Armstrong World Industries said “We have made a £2 million capital expenditure commitment for the Teesside operation over the next three years to enable us to achieve our growth strategy. This will include investment in design improvement technology and production machinery, enabling the company to remain at the forefront of the fashion driven cushion vinyl market and increase production capacity allowing turnover growth.”
SFI grant assistance of £430,000 has been secured from One NorthEast towards the capital expenditure of the project.
Keiron praised RHK’s assistance, saying “RHK was recruited to source grant funding towards the project because of its proven track record in this field. RHK has successfully fulfilled its brief in securing a SFI grant of the value, and within the timescale, requested.”
Michael Cantwell, Corporate Finance Manager at Gateshead based accountancy practice RHK said: “We are delighted to have assisted this multinational company towards its growth strategy. Indeed we are currently working with Armstrong World Industries and One NorthEast to secure additional grant funding towards the Teesside plant.”
Ian Williams, head of One NorthEast’s Business Investment and Finance Team said: “We are pleased that One NorthEast’s offer of grant has secured the investment in the Teesside operation. The project will secure the long-term future of this pillar of the North East economy and its 184 jobs.”
Tees Valley Regeneration assisted Armstrong World Industries in developing its growth strategy. John Leer of Tees Valley Regeneration said: “Armstrong World Industries has played a major role in Teesside’s economy for the past 29 years. This investment will result in the company assisting the growth of Teesside for the future.”
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Members: DJ Thompson FCA DC Hall FCA GJ Miller FCA BC Thomas P Storey FCCA. RHK Business Advisers LLP is registered in England as a Limited Liability Partnership No. OC308294. Registered to carry on audit work by the Institute of Chartered Accountants in England and Wales.
