16 JOBS SECURED AS RUBBER MANUFACTURER BOUNCES IN

A new specialist rubber manufacturing business has been set up in South Wales with the help of a £475,000 funding package, safeguarding 16 jobs.

Hampshire-based rubber manufacturer, Cellular Developments Limited (CDL), has bought the assets of the former Roulunds Codan (Wales) operation on the Penallta Industrial Estate, near Ystrad Mynach, which produced rubber hoses and mouldings for the automotive industry.

The financial package, negotiated by professional advisors Broomfield and Alexander, included a £190,000 Regional Selective Assistance grant from the Welsh Assembly Government, and a Business Support Grant from Caerphilly County Borough Council.

The new company will trade as Valley Rubber Limited, and aims to capitalise on Roulunds Codan’s expertise in the automotive sector and expand its range of products, placing particular emphasis on creating a research and development capability.

CDL was established in Alton, Hampshire, in 1982 by rubber technologist Terry Forster. From a company specialising in sponge rubber moulding, it has grown to a £2m turnover company supplying a range of rubber and thermoplastic mouldings and extrusions to the automotive, domestic appliances, building, defence and electronics industries.

CDL, which ISO 9000 registered, has built its success on offering technical solutions and advice on rubber products to designers and engineers, and on the ability to progress to rapid prototyping.

Valley Rubber has its own laboratory and technical personnel, and will maintain CDL’s approach of involvement in the design and engineering of components. The company holds and will maintain the TS16949 Quality approval standard, which enables it to supply to the highest level of automotive applications.

“The opportunity to acquire Roulunds Codan’s plant and equipment and also to retain the skills and experience of its specialised workforce was an irresistible one,” said Mr Forster.

“I’m happy to be able to make this investment in Wales, and am very grateful for the help of the Welsh Assembly Government and the professional corporate finance guidance we’ve had from Broomfield and Alexander.

“I am look forward to working with my team to build and expand our business in Wales. The automotive sector in Wales is continuing to grow, and plays such an important part in the Welsh economy.”

Mark Jones led the Broomfield and Alexander corporate finance team, which prepared and submitted the business plan worked with the local authority, Finance Wales and the banks to secure the funding package.

“This investment is excellent news for the South Wales Valleys – it represents a high-quality small business being attracted to Wales, and the safeguarding of 16 highly skilled jobs within a very important sector.” he said.

“Our specialist corporate finance team has strong links with funding providers across Wales and England – in the past 12 months we have helped clients secure over £50m of funding – and I’m delighted we were able to help CDL in this new exciting venture.”

Caerphilly council’s cabinet member for regeneration, Cllr Tudor Davies, said, “The Authority would like to welcome this new business venture into the county borough, and we are particularly delighted that CDL is safeguarding jobs and maximising the skills and experience of the existing workforce. We will continue to work with the company and offer as much support as possible in the future.”