Friday, June 30, 2017

News: McLaren's Rotherham factory on track to deliver quick ROI


McLaren's Composites Technology Centre (MCTC) in Rotherham is set to provide a return on the investment of £50m within five years of full operation.

Plans were approved in April for a 75,000 sq ft development on the Advanced Manufacturing Park (AMP) in Rotherham that will enable the supercar manufacturer to develop and manufacture the Monocell and Monocage carbon fibre chassis used in future McLaren models. These carbon fibre "tubs" are now in their second generation and have recently been unveiled as the key feature of McLaren's new 720S.

The centre is set to create more than 200 jobs and will comprise approximately 150 production staff and 50 manufacturing support staff. Recruitment is already underway.

Providing an update on its fourth consecutive year of profitability from record sales in 2016, the Woking firm said that: "When commissioned and running at full production from 2020, the MCTC is targeted to deliver cost savings of around £10m annually compared to today and the chassis supply will increase average percentage (by value) of a McLaren car sourced in the UK by around 8%, from its current average of around 50% (depending on model)."


Construction on the facility is due to start this year as McLaren and the University of Sheffield deliver a two-year research and development programme. The first pre-production chassis, built using trial manufacturing processes in the nearby University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing, is expected to be delivered to the McLaren Technology Centre in the second half of 2017.

The £50m inward investment is largely down to a new partnership with the AMRC and is backed by a grant of up to £12m via the Sheffield city region (SCR). The investment is set to have a £100m of GVA (gross value added) benefit to the local economy by 2028.

The investment is part of McLaren's "Track22" plan which was announced last year and includes an investment of £1 billion into R&D over the coming six years, leading to the launch of 15 all-new cars or derivatives. The company also has an objective of producing more than 4,500 vehicles annually by the end of 2022.

The latest financial results show that the plan is on track with a profit before tax of £9.2m from an annual sales revenue of £649.8m in 2016 giving McLaren Automotive a fourth consecutive year of profitability in only six years, since the start of sales in 2011. This was an increase in profit before tax of 70% compared to the £5.4m reported in 2015.

Operating profit of £65.8m in 2016 was the company's highest ever and was underpinned by record sales, with a total of 3,286 cars purchased during the year.
Mike Flewitt, CEO at McLaren Automotive, said: "Investment in R&D and future product during the period of £129.1m – 20% of turnover – reaffirms our commitment to the Track22 Business Plan that will produce 15 new models or derivatives by the end of 2022 and the focus going forwards will be on successfully delivering these new products and managing continued profitable growth."

The firm also reported immediate customer interest in the second-generation McLaren Super Series, the new McLaren 720S, and that some 1,500 orders have been taken to date.

UPDATE: McLaren Automotive and the McLaren Technology Group are being brought together under one corporate structure to be called the McLaren Group. The Group is today valued at £2.4 billion, had a combined turnover in 2016 of £898m, and now employs more than 3,400 people.

McLaren Automotive website

Images: McLaren Automotive


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