MV Commercial has announced a "multi-million pound" investment in trailer and rigids manufactuer Fruehauf, which it bought out of administration last September.
Production at the company's 67-acre Grantham site has initially been focused on tipping trailers with several new products scheduled for launch during 2022.
The company is also growing its workforce, which has seen an additional 30 new staff join since October, with plans being finalised for employment to reach 175 before the year end.
MV Commercial MD Steven Cairns (pictured) said: “We are already producing 12 units a week and, as we start to see the result of the introduction of new build lines and state-of-the-art equipment, we anticipate that number reaching 20 a week before the end of the year.
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“We are especially excited about the synergy between our two companies both in respect of Fruehauf supplying trailers and rigids direct to MV and also about establishing a major MV Commercial sales and service facility on the site.”
Administrator Quantuma Advisory said Fruehauf’s collapse last August could be attributed to a toxic mixture of Brexit, Covid-19 and a global shortage of materials.
It said unverified draft accounts for the year ending 30 September 2020 showed a significant loss of £2.7m.
“The company’s difficulties can be attributed to the change in trading terms with the EU following Brexit, coupled with the disruptive effects of Covid-19 to the supply distribution chain and a global shortage of materials, particularly electronics, which has resulted in a marked reduction in sales volume and gross margins,” it explained.
