Contract wins see Rixonway ramp up production

Rixonway Kitchens, of Dewsbury, has won supply contracts worth more than £7m in London and the south east.

As a result, it will manufacture and supply 125,000 kitchen units for social housing organisations over the next three years.

The contracts, for a mixture of local authorities, housing associations and arms length management organisations (ALMOs), will lead to 16,000 properties being fitted with new kitchens.

Rixonway is strengthening its kitchen design and survey team from 43 to 53.

It is also investing £350,000 in a third automated production line in Dewsbury, to give it greater flexibility and capacity.

Chief executive Paul Rose said yesterday: “Last year was really tough for many manufacturing businesses, and particularly for those firms working primarily in the public sector, where the high degree of uncertainty among existing and potential clients about future Government spending plans created significant delays in the awarding of contracts.

“Since the start of the calendar year, we have seen a growing confidence in the sector, as the commitment to start new contracts has come through from clients and contractors.”

The funding changes introduced through the new self-financing rules in April 2012, have enabled local authorities to keep all their rental income for the first time, and independently manage and maintain their own housing stock.

The new self-financing system covers a 30-year period, and has resulted in significant increases in the provision of funding for capital works and mainten- ance.

Mr Rose added: “The financial year 2012/13 was the first year the new system has operated and councils took time to adjust and adapt to the new environment.

“But we are now seeing real evidence of increasing confidence and certainty in the market, resulting in more positive contract flow.

“We have been very successful in winning many valuable contracts throughout the UK.”

Rixonway Kitchens is one of the UK’s biggest manufacturers of rigid kitchens for social and affordable housing.

It has an annual turnover of more than £30m, and manufactures 500,000 kitchen units a year. It employs 485 people.

The latest contract wins, along with others announced earlier this year, will see annual production rise to between 625,000 and 650,000 units.