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Ferrotech, Seizing the moment

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Manufacturing in Action, Source : The Manufacturer
Published : December 2002

Peter Brookes and Gerard Quaid, directors of Ferrotech, formerly Bruhl (UK) talked to Jayne Flannery about their successful management buy-out of one of the UK’s leading foundries

There is nothing quite like ownership for motivating a management team. When Harald Steuff, Peter Brookes and Gerard Quaid got the chance to purchase the UK foundry business of the German based Eisenwerk Bruhl group, the trio seized their chance.

Beans Foundries - known as Bruhl (UK) since 1997 - had a long tradition of engineering achievement. Beans Industries manufactured large diesel engines for the bus and truck industries and produced iron castings for the automotive industry. At one point there was even a range of Bean motor cars.

Starting afresh though, the newly independent company, based at Tipton in the West Midlands needed a new name. Ferrotech conveys well the company’s unparalleled grasp of the technologies that underpin a contemporary foundry. It is recognised as one of Europe’s major producers of complex cast iron components, supplying automotive, industrial and agricultural engine manufacturers across three continents.

Eisenwerk Bruhl, one of the biggest players in the industry, had invested £7 million in its UK business equipping a state-of-the-art foundry that was already producing around 40,000 tonnes of cylinder blocks, cylinder heads and other cast iron components annually. However, the company was heavily indebted with loans to external banks and its markets were restricted by centralised policy making over which it had no control.

“The extensive programme of capital invest-ment left a considerable debt burden,” said Peter Brookes, finance director. “It was a condition of the buy-out that the German parent would pay off these loans, leaving us virtually debt free and with a much stronger balance sheet.” He pointed out that from a management perspective there have also been enormous benefits. The company has a new found agility. Decisions are made quickly and easily these days.

Gerard Quaid, director of sales and marketing is delighted at the more open environment in which he can now attract new business. “Under the ownership of Eisenwerk Bruhl, we were tied to the cylinder block and head business. Our sales and marketing activity was restricted both in its areas and in its customers as we were in direct competition with the parent company. In my opinion we lost a lot of opportunities.”

His judgement has been vindicated. Within the past year the customer base has doubled in size. Now that Ferrotech can freely demonstrate the superiority of its products, plants and processes and customers are voting with their feet. Although bringing a new cylinder block into production can take many months because of the complexity of the tooling, there have been many much quicker ‘wins’. “With less technically demanding components, it has been easy to prove to the automotive industry that we can do a better job than their existing suppliers.”

Foundries, like mills, suffer from a post-industrial image problem. In the public consciousness they are still dark satanic places. The interior of this foundry is bright, airy and in pristine condition. “We have created an extremely clean and dust-free environment that is much safer and also environmentally-friendly,” said Quaid. “It is totally contrary to how people imagine an iron foundry must operate.”

The foundry is unique in the UK as it is the only facility producing both cylinder blocks and cylinder heads. Other operators can manage one or the other, but not the two simultaneously. When it comes to ‘best in class’ expertise, Ferrotech believes there is no competition. “The production line we have here is literally state-of-the-art,” continued Brookes. “Earlier investment included an HWS moulding line. It is the only one of its kind in the country and ranks among the most sophisticated in Europe. It is totally automated and can turn out in excess of 100 moulds an hour.”

There is also an automated core assembly and pick-up unit that locates the cores in the mould in the exact position. “Its repeatability is fantastic and it works in conjunction with and comm-unicates with the moulding line. Our metal pouring system is also totally computer controlled. Not too long ago a guy actually stood there with a ladle. Now that it is automated we have a much greater ability to measure, record and control the process. Temperatures, parameters, inoculation - everything is tracked,” he stated.

The company’s new owners will continue to invest in the plant, and Ferrotech’s core making facility is the next target. Cylinder blocks and heads are not straightforward castings. The finished product must contain oil ways, waterways, valve seating areas and other tricky empty spaces. These are created by the insertion of sand and resin cores that sit in the moulds when molten metal is poured in. It sounds simple enough, but the men explain that it is actually a very complicated process and Ferrotech want to be more up-to-date with its method of manufacture. A completely new core cooling and knock out system to get the cores out of the casting is already in situ. Again its is wholly automated and never comes into contact with that all too expensive human touch.

The enthusiasm of both men is palpable. “It is a great feeling to own the company and a great opportunity to take it forward,” concluded Quaid.