Million pound contract win moulds Fairgrieve’s future
A Washington based manufacturing firm has won a £1m contract with one of Germany’s biggest companies.
Fairgrieve Moulding has beaten off competition from Australia and the US to secure a deal to manufacture equipment for global confectionery giant August Storck AG.
The firm’s directors hope this initial contract will lead to additional work with Storck that could be worth up to a further £4m.
Steve Biggins, Fairgrieve Moulding, Managing Director, said: “To win it in the face of international competition is a tremendous achievement for us.
“As well as being a terrific opportunity in itself, we’re very hopeful that this deal will lead onto further work for Storck, which will in turn help us grow the business significantly.”
To help provide the working capital required to fulfil the contract, the firm, which currently employs nine staff, has secured a £200,000 investment from regional fund management firm NEL Fund Managers, via the Finance For Business North East Growth Fund.
Jane Siddle, Investment Executive at NEL Fund Managers, added:“Fairgrieve’s achievement in securing this major contract should not be underestimated, and it is yet another example of the manufacturing expertise that north east England still boasts.
“Their track record and production expertise made this a very attractive opportunity for us, and continues the investment momentum that the Growth Fund has gathered over recent months.”