Global expansion Bodycote

GLOBAL EXPANSION

As the world’s leading supplier of thermal processing services, UK-based Bodycote supports a large number of multinational businesses and niche players across industry sectors. Industry Europe looks at the continued success of the company.

Established in 1923 and based in Macclesfield in the north of England, Bodycote has steadily grown to become the world’s leading provider of thermal processing systems. Initially founded as a textile business at the heart of the UK’s flourishing textile industry, the Bodycote family utilised its entrepreneurial skills right from the start. Its strategic development toward the increasingly vital industrial requirements of the region and the country came in 1979 when the company decided to focus more on industrial applications, with tactical acquisitions including a heat treatment company and huge investment, boosting its overall capabilities.

In the past 40-plus years, Bodycote has continued this dedication to industrial applications and also its appreciation of the necessity of investment in order to stay at the top of its game. It has grown to become a global business with more than 170 facilities in 27 countries worldwide, so there are very few territories where Bodycote does not have a strong presence. It has long seen the value of investment in order to maintain and enhance its market-leading position, and provides a vital link in the manufacturing process for virtually all sectors.

Leading the way

Today, as the world’s leading supplier of heat treatments, metal joining, hot isostatic pressing and surface technology, Bodycote has extensive experience in supporting large multinational customers and their supply chains, as well as working closely with a number of niche local specialists. With a strong presence across a range of industrial sectors, the bulk of Bodycote’s activities (42 per cent) come from what it describes as ‘general industry’, which includes construction, mining and medical requirements such as implants, drills and tools. A further 26 per cent comes from the automotive industry, 20 per cent from aerospace and the remaining 12 per cent from the energy industry.

In terms of projected growth, both the automotive and energy sectors represent clear positive targets for the company. The growth in the automotive industry in 2012 was significant, a key reason for which has been the new technologies and new legislation regarding the reduction of CO2

emissions for new vehicles. Until recently the focus had been more on developing and manufacturing small eco-efficient cars, but now many factors are pointing towards a trend for larger, more practical family cars that are also meeting these strict rules on emissions. Heat treatment is an excellent tool for the required technological manufacturing on such models, so Bodycote is in an excellent position to respond to this trend.

In terms of the expected growth in the energy sector, Bodycote will also use its experience and know-how to add value to this burgeoning industry. There is a continuing growing demand for cleaner, greener types of energy. Many countries, particularly in Europe, are seemingly moving away from nuclear energy towards other forms of renewable, sustainable energy, so its strong presence in the heat treatment of wind towers is very interesting. In terms of alternative energy technologies, the company is also present in the solar power and fuel cell industry. Continued growth

Stable growth is also achieved from the aerospace industry, particularly as it has such long lead times. With Bodycote’s sales benefitting from the fact that the aerospace industry orders new planes around three to five years in advance, this also represents a valuable stability for the company’s capacity. Future growth for Bodycote will come from both organic expansion and strategic acquisitions. Some years ago it established a joint venture with a respected automotive

heat treatment company in a former German city in Romania, and recently this has become a wholly owned subsidiary.

Bodycote continues its global expansion. In April 2012 it acquired the heat treatment business of Curtiss-Wright Corporation which comprises nine sites in northern and central USA and serves a wide range of industries but with a particular focus on commercial aerospace and oil and gas. In that same month it took another step forward in this market when it opened a new surface technology plant in Houston, Texas. This was followed in October of the same year with the acquisition of a Carolina-based heat treatment business comprising six facilities in the south-east of the USA.

But the company has not neglected continued expansion on the European market either: in July 2012 it announced its plans to expand its heat treatment network in France with a new facility in Toulouse. This new location is dedicated to the assembly and strengthening of aluminium structural parts for the aerospace industry. In addition to heat treatment services such as annealing and straightening of large aerospace structural parts it also provides electron beam welding. n