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Gateshead plastics specialists map out ambitious R&D strategy

Gateshead engineering and manufacturing business TDX says it will need highly skilled workers, versed in polymer science, to drive extensive research and development plans.

The Team Valley-based firm, which underwent a management buyout in December last year, says it has fended off overseas competitors by offering a fast turnaround service to its customers.

TDX specialises in providing plastic films and tooling machinery to the food packaging industry in the UK and clients in India, the Middle East and America - and has a combined turnover of £23 million.

Chief executive Mark Prinn told Bdaily the firm is now embarking on extensive R&D activities to produce new products that will extend the shelf life of food and become increasingly environmentally friendly.

He said: “We’ve established ourselves as the market leaders in the industry, and have stayed one step ahead of the overseas competition by providing a fast, quality service on the doorstep of our suppliers with flexibility to adapt to their demands in a way overseas firms can’t.

“The aim now is to build added value into our products. That means bringing in people with strong polymer science backgrounds who can support our research - experimenting with blends and compounds to create products we can take to our customers.”

Competition among food retailers is playing into the hands of TDX, as Mark explains differentiation along packing lines - both in terms of aesthetics and environmental impact - are key to winning customers.

He added: “It’s particularly important for retailers to keep innovating on their environmental credentials. PET (polyethylene terephthalate) is infinitely recyclable so that’s a great starting point for us.

“From there we make sure the film, which is the piece of plastic from which products are moulded, is more technically able - that means we’ve added value for our customers.”

TDX’s 24/7 Gateshead operation, which employs 92 people, supplies major food packaging manufacturers such as Northern Foods and Bakkavor.

Mark and his team constantly have their ears to the ground in the industry to make sure they are years ahead of the trends and initiatives developed by retailers and their suppliers.

The changeable nature of the food supply industry means TDX have to be extremely flexible to peaks and troughs in demand.

Mark added: “The food supply chain, which we’re in, is really volatile. For instance, if we have a really warm weekend - everyone will have BBQs.

“It means more burgers and sausages that are already in the supply chain will quickly become depleted. Those stocks need to be replenished very quickly, and the volume uplift can be 300-400%.

“Retailers respond with promotions, and that puts pressure on us as orders come in with short lead times - and we’ve equipped ourselves to respond to that type of dynamic.”

Mark has commended the Government’s R&D tax credits programme, which has afforded the firm room to innovate.

He added: “We’re an R&D focussed business now, and that’s where a lot of our spend is going. It helps enormously to give us offset against our tax liability.”

This was posted in Bdaily's Members' News section by Tom Keighley .