Leaders of the glass company Cornwall Group have announced a commitment to spend £20m in new property, machinery, specialist fleet vehicles and other equipment over the next two years. The team has secured additional bank finance to enhance a stable base from which to grow further, the team has reported.
“We have always invested in bricks and mortar, and we are confident that this approach is the best way to continue building a business that is fit for the next generation of glass professionals,” said Mark Mitchell, chair of Cornwall Group. “We’ve worked with our bank for 25 years, and we know that this model of investment for us works and is sustainable over a tried and tested period.”
Cornwall Group includes Cornwall Glass Manufacturing, Mackenzie Glass and the commercial glazing and retail arm, Cornwall Glass and Glazing.
“We’ve seen a huge influx of private equity in recent years,” Mark added, “as investors target the UK glass market as a safe bet financially. Now that returns are narrowing, will they try to fatten those companies up for sale, or even look to float them on the AIM?
“We, on the other hand, plough our profits back into the business, people, machinery and buildings. We’ve got a very simple shareholder model, and we want to continue to grow a sustainable business, not one driven by short-term growth.
“And we know this model works. During the height of the Covid-19 pandemic, when we saw some glass companies go into hibernation as they ran out of supply, we were able to keep vital products supplied to our customers. That was thanks to continued investment on our part and a commitment that went beyond a short-term profit-and-loss view of the market, along with partnering with the right suppliers, of course.”
Cornwall Group’s recent investment includes a new fire saw, cutting line and bevelling and processing equipment at Mackenzie Glass. A new heat soak oven was secured for the company’s site in Plymouth, which can handle large units up to 4.2m x 2.7m, and a new £1.5m Bystronic sealed unit line was installed at the group’s St Austell site, which replaced a similar line that was installed 20 years ago.
“We have a rolling 10-year plan,” Mark said. “We are not driven by short-term gain, like many private equity firms, so we have more money to invest back in the business. But this means always looking one step ahead to make sure that next piece of machinery or strategic investment is the right one.
“We are generally a cautious business but you need to invest in the very best machinery. Cornwall Group’s policy is to invest in buildings rather than take out onerous leases. This approach we strongly feel will keep us going for the next generation.”
Read more about Mark’s strategy for the group in this comment article published earlier this year. For more information about Cornwall Group, call 01726 66325 or visit the company website.
