Financial News

  • 19 June 2014, 10:44

Yorkshire Firm Backs PM's Reshoring Crusade

A Yorkshire-based manufacturer will be hailed on Thursday as the latest example of Britain's push to become "the reshoring nation", when it unveils plans to shift overseas production capacity back to the UK.

Sky News understands that Vince Cable, the Business Secretary, will disclose that Bee Health, a 'nutraceuticals' company, has won a series of contracts that will result in it creating dozens of UK-based jobs.

Mr Cable will make the announcement at a Government summit on manufacturing in Liverpool.

He will say that the production shift underlines Britain's competitiveness despite the rapid growth of low-cost manufacturing centres.

The returning manufacturing capacity is worth about 15m and will result in Bee Health's workforce increasing from roughly 70 to 200.

Bee Health, which has been working with the Manufacturing Advisory Service, a Government-backed body, makes health products including gels, creams and powders.

It has production capacity in China, India and the US but can now manufacture more cheaply in its home market because of rising cost pressures abroad.

Holland & Barrett, the health foods chain, is a major customer of Bee Health and is understood to have influenced the reshoring decision because of its emphasis on local sourcing.

"An efficient supply chain is critical to business' cashflow and growth prospects," Mr Cable is expected to say.

"The growing trend of reshoring is a sign that British manufacturers can win business not just on cost but quality as well."

David Cameron has placed significant emphasis on Britain's ability to play a part in reshoring, which is becoming an important economic trend.

At the World Economic Forum in Davos in January, he vowed to make the UK "the reshoring nation" and announced the launch of a service to advise on suitable locations for returning manufacturing to Britain.

Volution Group, a ventilation products maker which announced a flotation on the London Stock Exchange, Symingtons, a food producer, and luggage manufacturer Antler, have all announced reshoring plans in recent months.

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