A north-east specialist in the design and manufacture of engine pumps is targeting further growth in the Asian markets after officially opening the doors of its new facility in China.
Ellon-based LFH Engineering Ltd has established a base in Nanjing as it looks to maximise opportunities in the Asian ship building sector. It will operate under the name Nanjing LFH Engineering Co., Ltd.
The 1600 sq m premises, which is a blend of workshop and office space, marks an investment of over £500,000 by the company and is already staffed by seven full-time workers, with a view to growing this to 12 by the end of 2016.
It also recently hit an important milestone for the new Chinese base with the imminent shipment of its first order on behalf of long-standing client Caterpillar. The order was the company’s first to be fully completed overseas, with the parts sourced, manufactured, supplied and tested directly from its Nanjing facility.
LFH has also appointed a Chinese agent – Shanghai D&H Co., Ltd – which specialises in the procurement of various motors, pumps, valves and parts to a range of industries throughout the country. It is hoped that this agreement will help establish LFH within China, increasing its links with many of the country’s major original engine manufacturers.
Les Hill, CEO of LFH Engineering Ltd, said: “For the last two years, we’ve actively been pursuing the establishment of a permanent presence within China so to have the first order completed and ready to ship from our new premises is fantastic, especially for a company that was only formed six years ago.
“Since we formed in 2010 we have seen a steady increase in demand from China for our pumps and also requests to develop pumps for new premium engine design projects within the country. After a number of visits and face to face meetings with the end users and our agent, a move to the country really was the next logical step in LFH’s growth strategy.
“Our Nanjing facility is fully operational, with seven full-time staff already working on-site. We have fairly ambitious growth plans for the facility and hope to further add to its staff and offering in the coming months. There’s already a well-established ship building industry within the country and the growing market continues to present opportunities that we hope to maximise in the months and years ahead.
“The appointment of an agent is also an important milestone for us as we continue to put in place the steps required to be successful within the country. Working in China is completely different to that of the UK so the considerations and planning process has been integral to this move.
“It’s an exciting new chapter for LFH and one that highlights a substantial investment for the company. We are grateful for all the support from both The Royal Bank of Scotland and Scottish Enterprise which has been invaluable in terms of helping our plans come to fruition. We are confident that the time is right for us to make such a move and the team is looking forward to playing its part in future success for the business.”
Launched in March 2010, LFH Engineering Ltd comes with a long established history in the design and manufacture of pumps, providing a range of products for ship propulsion systems, diesel power plants and the railway locomotive sector. The ISO 9001-accredited business also offers a range of pump service kits along with repair and refurbishment services.
LFH won the overall Small Business of the Year accolade at the Northern Star Business Awards 2011. For further information, please visit www.lfhengineering.com