Novus invests millions in Kazakh venture

The firm, which is based in Cleckheaton, has spent £2m on setting up a joint operation with a Kazakh company, which will supply major oil users with its range of seals for oil pipes.

The investment includes a small manufacturing operation in Tengiz – where one of the country’s biggest oil producing projects is located – and a larger manufacturing facility in Atyrau. The two sites employ a total of 10 Kazakh staff

Dr Gavin Smith, technical director, said: “Oil is a huge business out there so we see opportunities for big growth. It’s a huge investment for us but it’s going to pay dividends because the companies want to use local manufacturing.”

He added: “Traditionally, foreign companies have come in and not use local people but we are changing that.”

Novus manufactures non-metallic compressed-sheet fibre joints for a number of UK distributors in the aerospace, heating, original equipment manufacturing and ship building industries. It also exports metallic gaskets to countries including Australia, Thailand, and Malaysia. But the biggest growth is expected to occur in Kazakhstan, China, South Africa and Nigeria. The company, which was formed seven years ago and employs 90 staff on its Yorkshire site, is expected to post a record £14m turnover this year, up from £12m in 2010. “In five years we’ll be doing closer to £20m with Kazakhstan, China, South Africa and Nigeria playing a big role in that,” said Dr Smith.

Research and development of new products is a major part of the business to fight off its competitors. It is currently developing a new type of sheet material which has a high chemical resistance. It is due to be launched later this year. “It will enable us to push that product against competitors who don’t have a similar product,” said Dr Smith.

Novus is fighting back after the recession hit the original equipment manufacturing market, which is an important area for the company. “We dipped in 2009 but came back strong in 2010 and we’re getting even stronger in 2011,” said Dr Smith. Although Novus made redundancies, it is building up its workforce again and even employing a new team to cope with increased demand.

Novus is part of the industrial sealing manufacturing group FDS, which has a £74m turnover and employs more than 500 people around the world. It was acquired by FDS in 2008.

On the Cleckheaton site, FDS employs 220 staff across Novus and its sister company Flexitallic.

Total investment for the two companies over the last two years is almost £5m, including a major site restructure. In 2008, Flexitallic moved from Marsh Works to new premises at Scandinavia Mill, where Novus was based, after FDS decided to consolidate its sites in Cleckheaton and Rochdale.

Flexitallic, which has a £25m turnover and employs 130 staff, manufactures metallic gaskets for the oil, gas and nuclear industries.

One of the biggest areas of development is Thermiculite, a high-temperature sheet gasket capable of withstanding extreme temperatures, which can be used in the petrochemical industry, distilleries and car engines.

Dr Smith said: “We’re looking for new applications for the product. It’s a raw material that can go into a variety of end products and it’s something that our competitors aren’t doing at the moment.”

Meanwhile, FDS has spent £80,000 creating an Academy of Joint Integrity, which trains people to fit its products properly to ensure there are no leakages.

Tighter environmental and safety legislation means that technicians on site need further training. Launched in April, it has already trained 100 people externally and is running its first monthly in-house course next month. It is also offering companies free taster sessions.

“There is a desire from the company to make sure our products are fitted better and improve the skillset of industry,” Dr Smith said. “The aim is to have an academy of joint integrity in each of our major distributors.”

Academy of excellence

The Academy of Joint Integrity was launched by the FDS Group of companies in April.

The academy, headed up by technical training manager Gary Milne, has dedicated facilities in Cleckheaton, Aberdeen, Teesside and Humberside in the UK plus globally in the US, Australia, New Zealand, Malaysia, South Africa, Nigeria, Thailand, China, Middle East and Kazakhstan.

The training programmes are designed to address the lack of standardised qualifications for bolted joint assemblers, which the company says are identified by the industry as a leading cause of joint leakage.