New multi-million pound Tyneside engineering firm to boost regional jobs
A private-equity backed manufacturing firm has announced the creation of a new engineering services division.
This follows an initial £9.5m investment aiming to see see dozens of jobs created in the North East.
Pryme Group - providing integrated manufacturing solutions to the oil and gas, defence and aerospace industries - has developed this state-of-the-art facility with support from both private and public-sector organisations, including North Tyneside Council.
An additional grant funding of £1.35m was provided by the North East Local Enterprise Partnership (LEP), through the UK government’s Local Growth Deal; allowing UK Land Estates to build the unit speculatively at a cost of £4.5m.
Angus Gray, CEO of Pryme Group, said: “The move to Tyne Tunnel Estate creates a unique opportunity to bring together the combined talent and expertise of the distinct Pryme companies under one roof.
“We anticipate that the site will be up and running by mid 2018 and look forward to the opportunities the new facility presents clients, staff and suppliers.
“We would like to pay tribute to North Tyneside Council and the North East LEP and UK Land Estates, for investment and support in making this process as smooth as possible.”
Located at the Tyne Tunnel Estate, North Shields, work is underway to ensure the 58,000 sq ft site is fully operational by summer 2018. Meanwhile, Pryme Group has signed an initial 10-year lease with the option to extend the agreement by an additional five years.
The business, which has already committed around £3.5m in new equipment and CNC machinery, expects to double its current workforce to more than 150 in the next five years. At least 20 new personnel are to be added by the end of 2019.
Pryme Group has specialist, in-house expertise across a range of complementary manufacturing services.
Three separate group companies - MKW Total Engineering, Stargate Precision Engineering and TME Hydraulics - have now been amalgamated under the same banner, having previously been situated in Ryton.
Sean Collier, senior manager for business and development at North Tyneside Council, added: “We already know that North Tyneside is a great place to live, work and visit and we are delighted that Pryme Group has chosen the borough to set up its new premises.
“These are exciting times for this ambitious engineering firm and the prospect of new jobs being created is great news for local residents and the region as a whole.
“On behalf of North Tyneside Council, I would like to welcome the company to North Tyneside and we look forward to continuing to work with them in the future.”
Keith Taylor, managing director of UK Land Estates, said: “We are delighted with the result of this £4.5m capital investment, in partnership with the North East LEP.
“We are extremely pleased to have been able to attract an occupier of Pryme Group’s standing as we continue our investment programme across our core estates.”
Pryme Group, which currently employs around 225 people in total, is on course to increase turnover by more than 20 per cent to above £18m for its April 2018 end-of-year.
With headquarters in Dundee, the business offers a turnkey service for global contract manufacturing, combining machining with design capability, project management, hydraulic services, fabrication skills, assembly and testing.