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The Welsh Government is supporting a substantial expansion at Clayton Engineering Limited.

First published:
16 December 2016
Last updated:

This was published under the 2016 to 2021 administration of the Welsh Government

It is the largest single contract won to-date by the Knighton based firm and one of the most substantial contracts awarded by the RNLI for boat launch and recovery equipment.

Clayton Engineering Limited, a specialist design and development company, will be manufacturing half of the RNLI’s fleet of Shannon vehicles being ordered at this stage.

The Company will also be responsible for providing a comprehensive in-service support for the whole fleet through an integrated logistic support contract.

The Shannon Launch and Recovery System is a four track hydrostatic drive vehicle which is 22 metres long and weighs 37 tonnes. It is highly mobile and can successfully climb shingle beach gradients in excess of 25% with a 15 tonne lifeboat housed on its carriage. 

In order to deliver the new contract efficiently, Clayton Engineering Limited need to expand its production facility to increase capacity. The Welsh Government is providing a £99,593 Property Development Grant towards the cost of a new £500,000 extension to their fabrication and welding department. The Company currently employs 42 people and the investment will safeguard eight jobs as well as creating opportunities to train a minimum of three new skilled workshop personnel.

Economy Cabinet Secretary Ken Skates said:

“This is a really significant contract for Clayton Engineering Limited and testament to its advanced manufacturing expertise, capability and highly skilled workforce. 

“I am delighted the Welsh Government is able to support the company’s growth and expansion with a Property Development Grant that will ensure the business remains highly competitive and will continue to provide a world class service from mid Wales.

“Its good news to hear that the Company is nurturing home grown talent, developing their workforce and creating opportunities through its apprenticeship scheme.”

Clayton Engineering’s Managing Director David White said: 

“We are carrying out a significant investment programme to develop our infrastructure and train new personnel in order to enhance the Company’s capability and resources. 

“A key element of this strategy is the new welding facility which will enable heavier and much larger structures to be manufactured on-site. It will also allow a significant expansion of the stores and Goods Inward department into the space vacated by the welders once the new workshop has been completed towards the end of March 2017.

“In total we are investing approximately £750,000 in our facilities and equipment. The Property Development Grant is an essential part of this investment as it has underpinned the additional borrowing and release of capital investment required to fund such a large development project in Clayton Engineering’s manufacturing facilities.”

The first of the Shannon Launch and Recovery Vehicles made by Clayton Engineering is now on service at Ilfracombe Lifeboat Station. It is one of the most complex pieces of equipment produced by the Company and has used all of its core competencies in project engineering, the accurate production of large complex fabrications and the assembly and test of a vehicle containing a sophisticated hydraulic system with electronic control. The current manufacturing contract for Shannon vehicles is due to be completed towards the end of 2020 with the support contract continuing until 2022.