PP Electrical Systems sets sights on European expansion

Posted on 3 Feb 2012

SME electromechanical assembly firm PP Electrical Systems has opened a dedicated sales and marketing and technical office in Germany to help it grow orders in the country.

The firm, which employs more than 225 people at its Cheslyn Hay facility, has set its sights on European expansion after launching its first overseas operation.

PP Electrical Systems is looking to build on more than £4.5m of orders to customers involved in machine tools, food packaging and semi-conductor production.

Located in the heart of Hamburg, the will help to support existing clients, target new markets and provide access to opportunities in Luxembourg and Switzerland.

“When you do business in Germany, you have to show commitment and a desire to build long-term relationships,” explained Tony Hague, managing director. “One of the best ways to do this is to become part of the local economy, employ local people and immerse yourself in the way they do business.”

Mr Hague continued: “PP Electrical Systems GmbH was our response and, after taking six months to find the right office and the right member of staff to drive it, we now feel we’re in an ideal position to push forward into mainland Europe.”

The German operation will initially employ two people with associate engineers brought in to offer technical support on existing contracts.

The company has picked up more than £2m in new contracts during 2011 and expects to double that in 2012.

This takes PP Electrical’s direct export sales past 25% of its £24m annual turnover, with about 80% of its electronic assemblies and control systems now ending up at an end user overseas.

Hugue added: “All of the design and manufacturing stays in the UK and we see operations like the one in Hamburg as a way of giving the customer what they want.The German subsidiary may well be the start of many and there is definitely an opportunity for an additional base to explore massive growth in the United States of America.”

PP Electrical is one of ten West Midlands-based companies that make up the Midlands Assembly Network.