Meccano Toys Moves Back to Northern France

Meccano, one of the largest European toy manufacturers, has recently moved a segment of its production operations back to France. 

Alain Ingberg, Managing Director, explains that the move was done in stages over two years, and the investment began back in 2005 with the upgrading of facilities in Calais. "Now we are able to put a 'Made in France' logo on all our Calais-produced toys," he said.

According to Ingberg, Meccano decided to move back a portion of their Chinese manufacturing to Calais for two main reasons; "Firstly, we already had facilities there but they were under-used. We wanted them to be working to full capacity. Secondly, production in China was beginning to be problematic. The cost of labour was rising and delays in delivery had doubled and were increasing." Since moving production back to Calais, Meccano are able to offer significantly more flexibility.

Another influence was currency - the company's investment in China was primarily to serve the dollar market. It's more difficult to sell to Americans and Australians in euros than in dollars. Now that the euro is so much stronger than the dollar, Meccano has less interest in these markets.

Regional support in France offered another draw. "We didn't make the decision based on state funding, but we were helped enormously by the regional development agencies (CDCE et de Finorpa) during the difficult transition period," explains Ingberg.

Background:

Meccano is probably the oldest toy manufacturer in the world. Founded in Liverpool in 1898, its first factory was built in the UK. Meccano subsequently and for many years ran one factory in East Germany and one in France. The German factory closed down during the Second World War, and the British one closed around the same time due to low profits. So, only the French factory remained, first in Bobigny and then - from the 1950s - in Calais.

Bombardier Inc Investing in Morocco

Bombardier Inc, manufacturer of a large range of regional and business aircraft, revealed Wednesday 15 November that its aerospace division will be investing $200 million over eight years to set up a manufacturing facility in Morocco.

The region has already attracted France's EADS and Safron in a government attempt at developing the North African country's aerospace industry.

Bombardier has manufacturing plants in the United States, Northern Ireland, and Mexico. Much of the company's commercial and business jet production takes pace in Canada, but high labour costs and a strong Canadian dollar have increased production costs. Setting up a facility in Morocco is 'consistent with their strategy to improve their overall cost of structure,' BMO Capital Markets analyst Fadi Chamoun said.

The production of the plant will begin in 2013. Much of the manufacturing will be on simple plane parts, such as floor sections and panels, and will not be part of a specific plane program, said Bombadier spokeswoman, Haley Dunne.

The announcement coincides with the Dubai Airshow taking place this week, where Bombardier unveiled the flight deck of its new C-series plane and received an initial order for 10 single aisle jets.

Rolls-Royce - 3 New Advanced Manufacturing Plants, Rotherham

Plans for three new Rolls-Royce factories in the Waverley Advanced Manufacturing Plant have been approved. These plans are a major boost for the local area that has a particular strength in advanced manufacturing. The investment is a step towards securing continued growth in manufacturing throughout the United Kingdom, a cornerstone policy in the Government’s plans to stimulate the economy.

The first factory is expected to start production in early 2013 “This is obviously only the first step in Rolls-Royce’s exciting plans, and sets in motion the development of yet another piece of the Advanced Manufacturing Park jigsaw,” said Councilor Gerard Smith.

Rolls-Royce does not seem to have been affected by the economic crisis; the group’s half-yearly report for 2011 showed a 28% increase in underlying profit before tax, with £8.7 bn of new orders creating a record order book for the company of £61.4 bn. The group's long-term strategy aims to double its total revenue in the next decade, through organic growth.

Nuclear

One of the factories on the site will be used to assemble power vessels for the next generation of UK nuclear power stations. Should plans proceed smoothly, it is expected that the first of the new vessels will be delivered in 2015. Detailed proposals regarding the facility, which is part of the company’s ‘Project PoWer’ initiative, are to be received in early 2012. 

As well as providing nuclear power to the UK, Rolls-Royce has operations worldwide, and was awarded a 20 year contract with the Dukovany nuclear power plant in the Czech Republic in February this year.

Aerospace

A second factory has been earmarked for the production of fan blades for the aerospace sector, as a sister factory to one currently in operation in Derby. At the height of the recession in 2009, the aerospace sector achieved growth of 5.4%, and currently employs approximately 100,000 people across the UK. The resilience of this industry is based primarily upon its export market, and if the UK’s current market share can be maintained, the industry would be worth an estimated £352 bn over the next 20 years, should growth targets be reached.

Both the nuclear and aerospace industries have also proven to be resistant to the effects of the recession, at a time when there is talk of a possible ‘double dip’. These two factories alone are expected to create up to 360 jobs. The third plant may also be used by Rolls-Royce or let to another occupier, possibly one of the firm’s suppliers.

Denis MacShane, MP for Rotherham added; "The decision of Rolls Royce to come to Rotherham and invest in the Advanced Manufacturing Park facility is a payback for the investment in creating this unique facility over the last ten years. It opens a new chapter in South Yorkshire's history as one of the world's engineering centres, and is good news for a new generation of workers."