The label printer recently purchased the site on the Plant Lane Business Park to continue its expansion, which has been a result of demand for its digital and security labelling products.
The new 2,230sqm factory has significantly increased the capacity of the business, which was previously based at a 557sqm site in Cannock. The factory was formally opened by Fabricant, who also unveiled a commemorative plaque, in the presence of 70 stakeholders including customers, suppliers, staff, local councillors and professional advisers.
“After seven consecutive years of growth we were experiencing significant overcrowding challenges,” said managing director Adrian Steele.
"We identified this vacant former speedboat manufacturing facility earlier this summer as being ideal for our future needs and with support from our professional advisers we secured a quick transaction in early August. This allowed us to refit the site to our specification before moving the factory in October.”
According to Steele, the factory will allow the firm to expand its production to meet both domestic and export demand for its tamper-evident, digital label and carton products for the next 10 years.
He said: “The project has taken a lot of effort from everyone involved. Our staff have been amazing; everyone moved with us and the relocation itself went well ahead of schedule.
“With a fantastic facility like this we can now grow to meet pent-up customer demand for our products. We have already committed to significant new machinery investment for 2015 that we just couldn't fit into our previous site, enabling us to increase production capacity. Now that our capacity constraints have been lifted we expect further significant growth in the next three years.”
Pickerings in Tamworth completed the property transaction, interior architecture consultants DSD Design advised the firm on the refit design and specifications and Handlesbanken in Tamworth provided the finance package. The Regional Growth Fund and the Business Development Programme, which encourages job-creating businesses in Staffordshire, also supported the project.
Mercian Labels, which has 46 staff and a turnover of £3.3m, operates a Xeikon 3300 digital press and a range of bespoke machines for tamper-evident coatings and barcode labelling. It serves customers in a wide range of industries both in the UK and internationally.
The company plans to recruit another 25 full-time positions across its new Burntwood and existing Derby factories in the next three years to expand its team in a variety of roles including skilled production, apprenticeships, finance, marketing, sales, quality and management.
