Diversity provides strength at Group Rhodes

The Wakefield-based company, which makes machines for a range of sectors including waste, automotive, and oil and gas, said it is in the initial stages of talking to companies it might consider buying.

Managing director Mark Ridgway said: "We are always looking for acquisitions that can help develop our markets. We are talking to one or two companies at the moment but it's early days."

The company's acquisition strategy has been at the heart of its growth.

Between 1985 and 2009, Group Rhodes acquired 15 businesses but today the main divisions of the group consist of Joseph Rhodes, Beauford Engineers, Rhodes Interform and Craven Fawcett.

Mr Ridgeway said the firm decided to diversify following the last economic downturn 10 years ago, which has enabled it to weather the current recession.

He said: "We realised that if we were going to survive another recession we needed to make sure that we had a strong platform to develop new research and development products."

Group Rhodes is one of Europe's largest original equipment manufacturers in its field, supplying machinery for metalforming, clay preparation, waste management, and sub sea oil and gas exploration.

The company employs 190 people at its eigh- acre site, many of them long-serving employees. Since 2000 10 staff have completed 50 years of service.

Last month, Group Rhodes won a Queen's Award for Enterprise in the innovation category in recognition of its continuous development of super plastic forming (SPF) and diffusion bonding presses.

These machines are specifically designed to produce titanium and aluminium alloys, which are primarily used in the aerospace and automotive industry.

It is the only UK company, and one of only three in the world, capable of commercially developing these machines.

Recent contracts include a multi-million pound order from BAE Systems to provide the facility to produce canard wings for the Eurofighter (Typhoon) project and a contract of similar significance to supply the machinery to produce nozzle bay doors to the Lockheed Martin Joint Strike Fighter programme.

Group Rhodes exports a third of its turnover, which is in excess of 15m, to over 30 countries each year, although Mr Ridgway believes that the number of products which eventually ends up overseas is nearer 70 per cent.

The company is currently focusing on exporting to Asia and, in particular, the Indian market.

It opened an office in Bangalore where it is currently involved in providing metal forming machines primarily for the aerospace industry.

It is also hoping to roll out its clay technology, which is used to make bricks.

Mr Ridgeway said: "India is integral to our export strategy over the next five years."

Closer to home, the company has been working on the development and manufacture of autoclave technology for the VT Group, which is in the process of being taken over by Babcock International.

The group is building a new 750m waste management facility for Wakefield Council.

The complex in South Kirkby will provide treatment facilities for more than 145,000 tonnes of household waste, which will be recycled into green energy or a filler for bricks and roof tiles.

Mr Ridgway said: "This could potentially be a huge market for us, not only in the UK but also overseas."

Innovation is at the heart of Group Rhodes. It is currently researching and developing machines to create thermoplastics in order to produce lightweight components for vehicles which would help to reduce emissions.

But the company has not been immune from the effects of the recession.

Delayed projects due to the uncertain economy led to a four-day week and a 10 per cent pay cut for employees between April and November 2009.

Brick making fell by about 60 per cent as house building slowed down. "If we hadn't diversified, that part of the company would not have been able to stand on its own," said Mr Ridgway.

He added: "We were confident that projects were still in the pipeline but some of the major contracts, such such as those for the aerospace sector, slowed down their project approval. Having said that, we kept our volume high through oil and gas equipment production."

Orders began to flow again in the first quarter of 2010 and the group now has a two-year order book.

Looking to the future, Mr Ridgway added: "My father, Ian Ridgway, chairman of Group Rhodes, conducted a management buy-out of the business in 1984 and today our order book has never been stronger. This is a result of a 10-year policy of diversifying into markets which exploit our core competencies."