The managing director of Gateshead-based NTG Precision Engineering has said it will continue to seek strong businesses as part of its acquisition strategy following a busy 2022.
The company was established more than 40 years ago and provides components and engineering services to clients within markets such as defence, energy generation and electric vehicles.
During 2022, the business continued to press forward with its growth plans, investing £500,000 into a milling machine as well as two Haas VF6 milling machines as part of an ongoing £3.5m capital investment programme.
Mike Hutchinson told Insider that, following a successful year, the company “continues to grow” and is experiencing high demand, despite a number of challenges in the supply chain.
He said: “However, the situation overall remains extremely positive because the sectors that we operate in, including defence, electric vehicles, energy generation and food production, are still attracting strong investment.
“We are also benefitting from an increased move towards reshoring, with potential customers more inclined to source services and products within the UK.”
In July, NTG acquired Newcastle-based ABS Precision, which specialises in hydraulic bolting markets. The deal will “allow the NTG group of companies to further expand its capabilities and markets”, explained Hutchinson.
He added: “As a result, we will continue to support ongoing investment in its people, technology, and business development, that will help ABS, a specialist in hydraulic bolting markets, to continue to expand its market presence.
“ABS is an ideal example of our acquisition strategy. We continue to seek strong businesses in the sector that have both a reputation for high quality products and delivering excellent service that, like ABS Precision, adds further capability and capacity as well as an opportunity to develop new markets. We also look to assist those scale-up businesses which are seeking additional support on their growth journey.”
Looking ahead, the company plans to expand its team with “highly skilled roles that underpin our expansion within the sector”.
NTG is also reviewing acquisition opportunities across different regions, and will soon move into its new 45,000 sq ft unit in Gateshead, which is three times larger than its current manufacturing base.
The site will give NTG “more space to grow over the next five to ten years – allowing the business to be more agile and respond to commercial opportunities”, said Hutchinson.