Case Study - Roberts Metal Packaging

If you've bought toiletries or hair-care products in a metal container or with a metal closure recently, chances are it will have been made in Thames Gateway London, home to one of Europe's leading metal packaging producers - Roberts Metal Packaging.

Roberts Metal Packaging specialises in manufacturing aluminium and tinplate pre-threaded screw caps, small containers and godets for use in the cosmetic and hair care industry. Satisfying the needs of major clients including Boots, Alberto Culver & L'Occitane, requires the capability to produce a vast range of products, and the company have made a huge investment in plant and machinery. Their on-site equipment includes tooling for hundreds of sizes and styles of containers, which can be customized, printed, coated and embossed.

Roberts was, until very recently, based in Peckham, South East London, and with Gateway to London's assistance, has recently relocated to a brand new building on Birchmere Business Park, East Thamesmead, where their 50 staff are settling in well.

Gateway to London's Role
The Roberts relocation story begins with full order books and a factory running at capacity. The management team knew that a significant investment and expansion programme was needed for the company to maintain and build on its position as a European market leader, and relocating to modern premises would facilitate physical and financial growth.

Having been based in their Peckham premises for 80 years, they were finding themselves more and more restricted by the site. In particular, manufacturing over two storeys was becoming increasingly difficult, and there was no possibility of shift working due to the proximity of neighbouring homes. Delivery access and staff parking were also growing issues, so they started the search for new premises.

It was in autumn, 2003, that Roberts Metal Packaging first approached Gateway to London to make initial enquiries and scope out the property and financial options available to them. At this stage the company was also planning an internal management review, which led the management team to put relocation plans on hold while concentrating on finalising internal changes. As an interim measure Roberts completed a sale and leaseback deal on their Peckham premises.

A year later the company was ready to go ahead with the relocation plan and contacted Gateway to London to reinstate the project. They explained that under their sale and leaseback deal, they could only stay in their current premises until December 2006. The Gateway to London team started investigating possible new premises straight away and introduced Roberts' Managing Director, Chris Saunders, to the Capital Grant team from the London Development Agency to explore the company's eligibility for a grant.

After working closely with Roberts to fully understand the company's property needs, Gateway to London arranged for Chris Saunders to visit several locations which the team had researched and short-listed. Chris was particularly impressed by the Birchmere Business park option and revisited the location with his management team. Following the visit, it was agreed that the site in Greenwich met all of their needs.

Having identified their preferred site, Roberts Metal Packaging applied for a Selective Finance for Investment (SFI) grant from the LDA in late summer 2005, and in September, the company was awarded £200k of financial assistance. Gateway to London was on hand to offer advice throughout the negotiation phase of Robert's move, and introduced them to other business support organisations such as the Department for Trade & Industry's Manufacturing Advisory Service and UK Trade & Investment. As much of the company's training had traditionally been carried out internally, Gateway to London were also able to assist the company with accessing advice on training support to meet their new larger requirements.

Things progressed well, with Heads of terms being agreed in Summer 2006 and later that year, with Gateway to London still on hand to help with any last minute issues, the company started preparing to move.

In January 2007, the lease on the new property at Birchmere was signed and during January and February, Roberts relocated machinery and employees across to the new premises.

The Company view
Chris Saunders, Managing Director of Roberts Metal Packaging

"Relocating a business is an extremely disruptive exercise which requires a cohesive, committed management team and sound advice on hand. We found Gateway to London to be extremely supportive throughout the duration of the project and would recommend and encourage other businesses considering a relocation to make use of their services."

Outcomes
Roberts Metal Packaging is now in a brand new, single level factory which has had a huge impact on the company's efficiency. Moving away from a residential area has meant that they can now operate through the night, with obvious benefits for the company's capacity.

As well as the investment in new premises, Roberts has invested in new machinery, allowing for a further significant increase in productivity. The site at Birchmere is close to major trunk roads, which reduces time wasted in traffic, as well as having much better access and parking for delivery and staff vehicles. Over the next five years, Roberts anticipates an increase in the number of permanent staff employed and expects to grow annual sales by around 50%.