New 300 job factory in Telford praised by Business Secretary Sajid Javid
The Business Secretary has heaped praise on Telford after the town was named as the site for a major new factory employing hundreds of people.
Sajid Javid was responding to the announcement by Canadian giant Magna that it was to open a 225,000 sq ft car parts plant at the T54 industrial estate.
"The sensational success of UK car manufacturers, like JLR, is testament not just to our highly-skilled designers and engineers, but also all the innovative manufacturers – large and small – in the supply chain," he said.
"Magna's new state-of-the-art facility will create nearly 300 jobs and will be a very positive boost to the Telford economy."
Some staff are already being brought in and trained ahead of the building of the new 225,000 sq ft factory for Magna International, which also owns Stadco.
The arrival of a new car parts factory in Telford marks the biggest moment in the town's post-recession history.
That is the verdict of the man set to become the new leader of the borough council.
Shaun Davies welcomed the arrival of Magna International, whose subsidiary Cosma Castings UK is set to start work on a 225,000 sq ft site in the town later this year.
"This is probably the biggest moment in the borough's history from a business point of view, in terms of the new era of the economy post-recession," said Mr Davies. "But this is also a sign of what else is to come.
"We have lots of businesses interested in T54, maybe not to the size of Magna but companies that want to expand in Telford and move to Telford. It is a journey we are on but what a way to start.
I am proud to have been involved in it. It's one of the biggest investment deals."
A planning application for the massive factory is imminent, marking the culmination of two years of negotiations. Mr Davies said: "Anybody involved in negotiations knows there are moments where you think you have got it, and 10 minutes later you think you haven't. It has been a rollercoaster journey. For me, it was the latter part of last week that I became quietly confident.
"This is hard work of public sector council officers paying off. We have had £110 million worth of cuts and this is what we are achieving despite those. This is a big day and I pay tribute to the council staff involved in this." Magna had looked at other destinations in the south of England, Wales and mainland Europe – where Cosma Castings already has factories in Germany – before deciding to build its new factory in Telford. "We have strong transport links tot he West Midlands area, and that was a massive plus for us and our workforce," added Mr Davies.
Ben Goater has been brought in by Magna as general manager of the new plant, and will be partly based at Stadco while the work is carried out, although the two Shropshire businesses are distinct from one another within the Magna International Group.
"We looked at lots of sites," Mr Goater said. "There was a lot of support from Telford & Wrekin Council and the Homes and Communities Agency around the Telford investment.
"It was partly about a location that was geographically favourable to the Jaguar Land Rover plants.
"We recognised Telford as a good area that has got good industrial heritage, where we believe we can get the skills to support us."
Some staff are already being brought in at a management level and to receive training at the new factory's sister sites in Germany ahead of the opening of the facility in early 2018.
The plant will focus on supplying to JLR, although other manufacturers could ultimately also benefit from its expertise.
"In the short-to-medium term our focus is JLR, but we would like to supply others as well," Mr Goater added.
"We are excited to work closely with Jaguar Land Rover in the development of this project which will bring the most advanced structural casting technologies to the UK," said John Farrell, president of Cosma International, an operating unit of Magna.
"As lightweighting continues to be a key technology driver, we are uniquely positioned to help automakers achieve optimal weight savings throughout the vehicle architecture."
The exact value of the investment in Telford has not been disclosed, but with high-tech machinery such as heavy presses also being installed it is likely it could run into the tens of millions of pounds.
By comparison, JLR's engine plant cost a total of £500 million.
The factory will make parts for Jaguar Land Rover's future projects, and Lisa Palmer, from the car maker, said: "Jaguar Land Rover is a world-leader in the production of aluminium vehicles. We are pleased that Magna International's new aluminium casting facility will be based in the West Midlands."
The project was secured alongside UK Trade & Investment and the Automotive Investment Organisation, with financial support provided by the UK Government's Regional Growth Fund.
Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said the factory would have a positive effect on other local businesses.
"This is fantastic news for Shropshire," he said. "We have been aware of the resurgence in our manufacturing sector for some time and this is really good news for the county's economy and the people that live and work in and around Telford.
"Investments like this have a significant knock on effect demonstrating confidence in the area and attracting interest from others.
"We must also remember where there is a big factory there is a supply chain that employs people who spend their money with local businesses rotating the Shropshire pound many times."
The land was made available through the Homes and Communities Agency, as part of the Marches LEP Growth Deal with government in 2014.
That devolved power to Telford & Wrekin to sell certain patches of land, with money raised reinvested in the Marches area.
