Holiday demand sees Victory add more staff

Hull-based Victory Leisure Homes has also increased its staff numbers from 30 to 60 people since it opened in April 2009.

The company produces 16 models of static caravans at the former Stoneferry Road premises of Cosalt Holiday Homes in Hull, which stopped production in November 2008.

The mothballed factory was acquired by J R Rix, the Hull-based shipping to petroleum company, in November 2008 and is being run as a wholly-owned subsidiary by a former managing director of Cosalt Holiday Homes, Peter Nevitt and some of his old management team.

More than 280 people lost their jobs after the company was sold by Cosalt to Leeds private equity firm Endless in late 2008.

Some of the workers who were employed by Cosalt have found jobs at Victory Leisure Homes.

Tim Rix, the managing director of JR Rix, said he had wanted to do something positive at a time when the caravan industry in Hull seemed to be collapsing.

J R Rix has been based in Hull for 130 years, and its operations include a ship-building division based at the Hepworth Shipyard in Paull, near Hull.

Mr Rix added: "We decided to take on the challenge because we thought that if we can build ships, we can build caravans as well."

The UK market had reached 35,000 static caravans a year before the recession. However, it had slumped to less than 10,000 a year in 2008.

Mr Rix said: "Starting to build static caravans at the beginning of 2009 was a big gamble. I knew the guy (Peter Nevitt), who had run the factory previously, and I asked him if he would like to run his old factory again.

"We had faith in the labour force and also had faith in the management."

Mr Rix contacted Hull City Council, who had been "incredibly supportive to people who want to stick their necks out and have a go".

He added: "We got a significant loan from the Acorn Fund, which has money set aside by the council and is administered by the chamber of commerce, to buy some machinery. We have started building static caravans under the name of Victory Leisure Homes."

The factory re-opened on April 1, 2009 and production has risen from five to 15 units a week. Turnover is expected to be around 10m in 2010. Ancillary businesses have also sprung up around it.

Victory's success has also helped suppliers such as the Eltherington Group, based in Hull, which supplies it with aluminium for the exteriors of caravans.

Mr Rix added: "We have also benefited from the local work guarantee scheme which offers a subsidy for anyone employing somebody who has been on the dole for six months or more, who had a Hull or East Riding post code.

"When I decided to re-open the factory, I had never seen so many people queuing up with their CVs. It gives me a great feeling to see it full of people making things."

Mr Rix said the export market had been larger than expected, due to the weak pound.

He added: "We have a very flexible system which means we can make individual single or twin caravan units on the production line. In today's market, you have to be able to produce what the market wants."

Mr Rix said he planned to grow the business as demand for the Victory product improves, but he didn't want it to become a large volume caravan maker.

"We want to be more of a specialist producer,'' he said.

Wind farm hope for economy

Hull's economy could be boosted by plans to develop more wind farms, according to Tim Rix, the managing director of Hull-based J R Rix.

Energy Secretary Chris Huhne recently identified Dogger Bank as a prime area for the development of offshore wind farms.

Mr Rix believes the development of a Dogger Bank wind farm would offer great benefits for many coastal businesses.

Mr Rix also praised the stance taken by Hull Council over controversial back-dated port rates, which could have cost local businesses millions of pounds.

In 2009, Hull Council leader Carl Minns denounced the tax as unfair and said the authority would do all in its power to help those affected.

Mr Rix added: "That gave everybody in Hull breathing space. The new Government has said it will repeal the legislation requiring back-dated rates to be paid, and so the Hull economy has ridden out this potentially disastrous storm due to the foresight of the council leadership."