New investments in panel production technology are coming on stream at Egger UK’s Hexham plant, bringing total spending at the facility to about £42m in the last three years.
The latest round of an investment programme which has focused on achieving security of raw wood supply and product/capacity improvements is a new, fifth lamination line costing £9m.
The line, to be operational at the end of April, follows an earlier £9m investment in a Vits paper impregnation plant for its melamine-faced products.
Egger UK joint managing director Bob Livesey said further investment plans involved spending £30m during the next two years, including a second paper impregnation line. Five years ago Egger invested £120m in a new chipboard facility at Hexham.
“From our point of view, there are not many companies in our industry that are investing in this magnitude,” he said.
“There are a lot of factory closures [in the panel sector] but we are still committed to further investment.”
Egger is currently recruiting staff for the new Wemhoner laminating line, designed to replace an older facility and give added capacity, though the former line will remain operational for the foreseeable future.
“It also gives us the capability to emboss deeper textures which we can offer to the market.
“We’re giving the consumer and kitchen, bedroom and bathroom manufacturers the chance to buy and offer something which is cheaper but perceived to be of higher value, as good as a real wood veneer finish,” said Mr Livesey.
The investments have increased impregnated paper and lamination capacity by about 40% and 10% respectively.
Other investments in the last two to three years include £13m on recycling plants in Hexham and Barony, as well as two new recycling centres in Glasgow and Leeds, making Egger the UK’s largest consumer of recycled wood.
Two new logistics facilities have also been set up in Hexham – £6m on a new warehouse providing 9,000m² of space and £9m on a facility for its Zoom brand (edging and laminates).
Egger UK has planning permission to develop a manufacturing facility for finished furniture components, but Mr Livesey said the project was currently on the backburner.
