Engineering firm puts seal on US cash injection

The world’s fourth-largest manufacturer and designer of mechanical seals is investing in new high-tech metal-cutting and shaping machines at its site in Rockford, Tennessee. The expansion will create at least 10 new jobs in the US.

Until now AESSEAL’s complex machining has been concentrated in Rotherham.

AESSEAL said its US investment was sparked by the volcanic ash clouds in 2010 which disrupted air freight, as well as security concerns with re-routing freight, plus “the necessity of having at least one other strategic location on another continent”.

Managing director Chris Rea said: “The decision to invest in the US is not a replacement of, but a complement to, our existing UK manufacturing facilities, which we also intend to expand.

“In fact, we have recently purchased the adjoining site to our UK headquarters, which will allow us to double our current Rotherham-based workforce at whatever pace our customers allow our business to develop.”

The business is majority-owned by Mr Rea, with the rest held by private equity firm 3i. It did not disclose how much it paid for the Rotherham land and buildings, formerly home to Anglo-Dutch business ALcontrol.

AESSEAL produces seals for sectors including food, oil and gas and mining. It has more than 1,500 staff at over 230 global locations, including a workforce of over 340 in Yorkshire.

The US project is being led by manufacturing manager Andrew Driver. AESSEAL has been in Tennessee for about 20 years, where it has around 120 staff. The latest investment follows a $4.4m expansion there in 2008.

Chief executive Jonathan Wilkinson said: “The US is also our largest market and this facility will provide our growing US customer base with another opportunity for emergency supply. Not only will there be no loss of UK jobs, but the company sincerely believes that it will lead to faster overall company growth, globally.”