Millers targets growth as it nears milestone

A FAMILY firm has invested in its Yorkshire-based manufacturing site as part of plans to double the size of the business in five years, as it looks to significantly boost exports.

Millers Oils, based in Brighouse, has invested £500,000 in the facility, which is now home to a new research and development (R&D) laboratory.

The company, which is approaching its 125th anniversary, manufactures lubricants and fuel additives for the automotive, commercial vehicle and industrial market sectors.

Hide Ad
Hide Ad

Its customer base includes Stagecoach and Halfords within the UK, but the firm also exports to over 30 countries.

The export side of the business accounts for about 10 per cent currently, Steve Woollven, joint managing director of Millers Oils, told the Yorkshire Post.

However, the company’s ultimate aim is to have the export side of the business the same size as the UK side of the business, Mr Woollven said, adding that the firm exports to countries including China, Hong Kong, Malaysia and has a “sound base” in Europe, which is developing, especially in Eastern Europe.

He added: “Also we are looking to grow our business in both North and South America.”

Hide Ad
Hide Ad

Mr Woollven said the firm’s turnover has nearly doubled in the last five years. It was £15m five years ago, and is forecast to be about £28m this year. He said: “The plan is to double the size of the business in the next five years.”

According to Companies House, Millers Oils’ pre-tax profits were £133,966 in the year ending March 31, 2011, an increase from £105,849 the previous year.

Mr Woollven said the company wants to double its turnover in five years without increasing head count on the manufacturing side, adding: “It’s about improving efficiency, new machinery and better processes.

“We’ve done a lot of work already on improving the time it takes to blend products and fill products through improved pumping equipment.”

Hide Ad
Hide Ad

But he said the research and development department is likely to expand over the next few years, with the possibility of increased headcount. He said the future of the business is in developing new products.

The company’s new R&D lab will focus on developing nanotechnology to help manufacture products that reduce friction. It will also allow more in-house testing, analysis of used lubricants and quality control.

Meanwhile, old offices elsewhere on the site will be demolished to make way for expansion of the factory.

Millers Oils, which currently employs 125 people, differentiates itself from competitors in a number of ways, said Mr Woollven.

Hide Ad
Hide Ad

One of these is its focus on the development of low friction products, Mr Woollven said, adding: “We want to try and lead the way in terms of innovation in developing low friction lubricants.

“But we can’t survive and grow just through innovation and differentiation in products. It’s also about customer service and customer satisfaction. We back our products up with good technical support.”

Mr Woollven added: “We are also one of the few oil blenders in the UK which has oil analysis equipment and capability.

“We think there’s a massive opportunity in the UK for our business. We see big growth opportunities and we’ve set out our growth plans over the next five years which are ambitious and challenging.

Hide Ad
Hide Ad

“What we needed to ensure is that we had the infrastructure in place to enable us to go out and achieve that growth.”

Mr Woollven said: “It is unusual for a manufacturer to make this kind of investment at a time when the world economy is struggling.

“However, we are confident that the new facility will boost our bottom line as we improve our technology, products and the service we can offer our customers.

“Despite the recession, we have grown year-on-year and we see that continuing.

Hide Ad
Hide Ad

“I think it’s quite a success story for Yorkshire. We hear doom and gloom about manufacturing and the state of the UK, but we’ve been able to buck the trend with growth.”

Millers Oils, which has depots in Glasgow and Abingdon, Oxfordshire, is privately owned and its shareholders are family members descended from the Miller family. Andrew Miller is the company’s non-executive chairman.

Supporting the rising stars

RALLY driver Callum Black, 20, was at Millers Oils in Brighouse last week to discuss the possibility of sponsorship for 2012 and to review the 2011 season.

He was originally supported by Millers Oils via its Rising Stars programme, but this year extended his sponsorship with full car livery.

Hide Ad
Hide Ad

The company supports Mr Black with entry and running costs, as well as supplying him with gearbox and engine oil.

He finished fifth in the British Rally Championship (BRC), as part of the F2 category with front-wheel drive cars. Those who are supported by Millers’ Oils Rising Stars programme receive Millers Oils products, as well as advice and technical expertise.