News: Sarclad bribery trial ends with acquittals

Former staff members have been acquitted of conspiracy to corrupt and conspiracy to bribe after their company earlier agreed to pay some £6.5m in reparations.

Rothbiz reported in 2016 that criminal charges were brought against former employees of Sarclad, a Rotherham-based specialist in technology based products for the metal industry, following investigations by the Serious Fraud Office (SFO).

The firm is a world leader in providing technology-based products to assist metal producers reduce manufacturing costs and improve product quality. It relocated from Chesterfield to the Advanced Manufacturing Park (AMP) in Rotherham, opening new facilities in July 2012.

A Deferred Prosecution Agreement (DPA) was reached between the SFO and Sarclad Ltd in July 2016. Sarclad accepted the charges of corruption and failure to prevent bribery in relation to the systematic use of bribes to secure contracts for the company between June 2004 and June 2012. The contracts that were the subject of the DPA had a total value of over £17m.

As a result of the DPA, Sarclad agreed to pay financial orders of £6,553,085, comprised of a £6,201,085 disgorgement of gross profits and a £352,000 financial penalty. £1,953,085 was paid by Sarclad's US registered parent company as repayment of a significant proportion of the dividends that it received from the company over the indictment period.

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The DPA also required Sarclad to fully cooperate with the SFO and to provide a report addressing all third party intermediary transactions, and the completion and effectiveness of its existing anti-bribery and corruption controls, every twelve months for the duration of the DPA. The terms of the DPA have now been met and the DPA is now concluded.

A self-report was made following an investigation by the company of an issue which had come to light at the end of August 2012 as a result of the company's implementation of a compliance programme. The subsequent report by Sarclad's law firm was delivered to the SFO in January 2013, after which the SFO conducted its own investigation.

74 contracts were investigated (28 considered "implicated" and 46 considered "suspicious"), covering countries such as China, Korea, India and Taiwan. Evidence was found of payments to agents that were agreed outside the "percentage of contract value" basis expressed in the agency agreements.

Legal documents released this week show various requests from agents for money in order to secure contracts. In one example, a Korean-based agent asked Sarclad staff: "Will please Sarclad pay for the following costs which is essential for successful contract?

"Under-the-table cost (typical and important Korea) 9,000 euro

"Travel costs to take client to China as well as to England 14,000 euro

"Total 23,000 euro

"These expenses will be spent by Korean agent for clients to secure the contract."

Michael Sorby, Adrian Leek and David Justice were acquitted of conspiracy to corrupt and conspiracy to bribe.

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News: Former Sarclad staff face criminal charges

Two former employees of Sarclad, a Rotherham-based specialist in technology based products for the metal industry, have been charged with bribery and corruption offences.

The firm is a world leader in providing technology-based products to assist metal producers reduce manufacturing costs and improve product quality. Over the last 30 years the company has grown and expanded around the world and now supplies quality equipment to all of the leading steel manufacturers and suppliers across 46 different countries.

Michael Sorby, former director and Adrian Leek, former sales manager, of Sarclad Limited, appeared before Westminster Magistrates' Court yesterday, both charged with one count of conspiracy to corrupt, contrary to section 1 Prevention of Corruption Act 1906 and one count of conspiracy to bribe under s.1 Bribery Act 2010.

The alleged offences are said to have taken place between June 1 2004 and June 13 2012 and concern financial inducements offered to secure contracts for Sarclad.

The next hearing in this case will take place at Southwark Crown Court on March 24 2016.

Sarclad relocated from Chesterfield to 13,597 sq ft of office space at the Evolution development on the Advanced Manufacturing Park (AMP) in Rotherham, opening the new facilities in July 2012. The move involved a £1.6m investment by the manufacturers.

In November 2015, the firm expanded into an adjoining unit taking an additional 14,000 sq ft of primarily production engineering space.

The Serious Fraud Office (SFO) began its investigation in June 2013. The Financial Times reported last year that Sarclad could be the first company to enter into a deferred prosecution agreement (DPA) with the SFO. A DPA is a US-style agreement that allows a company to reach an agreement with a prosecutor to avoid a criminal conviction and is likely to result in a financial punishment. The Sarclad case is also thought to be one of the first involving allegations of bribery under the Bribery Act 2010, which came into force in 2011.

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News: Sarclad secures Chinese contract

AMP-based Sarclad, a provider of advanced technology products for the metals industry, has secured a contract from CISDI, a Chinese company which set up its European base in Sheffield.

Sarclad employs around 65 staff and specialises in world-leading products and applications for measurement, monitoring and quality improvement in the production and rolling of steel. Investing £1.6m and doubling capacity, Sarclad opened a new facility on the Advanced Manufacturing Park (AMP) in Rotherham in 2012 after moving from Chesterfield.

CISDI UK, a subsidiary of China's global engineering giant CISDI, opened its £2.2m offices at Victoria Quays in May and the procurement and design company has a shopping list of hi-tec, hi-spec engineering components for CISDI construction contracts around the globe.

Worth £190,000, the first deal will see Sarclad supply a remote strand condition monitor, a hi-tech quality control device to be used for a steel casting machine.

Richard Cowlishaw, managing director at Sarclad (pictured, third left), said: "Having CISDI located in Sheffield provides a direct link to the huge export market in China and will benefit not only Sarclad but other manufacturers and suppliers throughout the country.

"We feel proud and honored to have received the first order issued from its new Sheffield office.

"Our equipment will be used for measuring the critical parameters of a steel casting machine to ensure the highest quality of the cast steel slabs. It is custom-designed and manufactured entirely in the UK.

"The world-leading, hi-tech engineering equipment Sarclad offers satisfies CISDIs requirements in many areas of the steel industry, from steel casting to inspection and the texturing of rolling mill rolls."

John Lester, managing director at CISDI UK, added: "We are delighted to be buying from Sarclad, a company with a vast amount of expertise in the metals industry.

"The order will be heading for China, where our parent company CISDI Group will incorporate it into a continuous casting plant it has won a contract to build for Sha Steel in Zhangjiagang, in the Jiangsu province.

"There will be further orders to come from that project and we hope to place as many as possible within the Sheffield City Region.

"CISDI UK has a further £1.3m of procurement and design orders from China to fulfil on components within our first year, particularly those made to such long tradition in the local area."

Since March, Sarclad has secured further orders for steel plants in China and Germany. It also supplies plants in Canada, Turkey, Belgium, Saudi Arabia and Brazil.

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CISDI website
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News: Sarclad's contract success continues

Sarclad, a provider of advanced technology products for the metals industry, continues to secure major contracts from across the world.

The firm employs 65 staff and specialises in world-leading products and applications for measurement, monitoring and quality improvement in the production and rolling of steel. Investing £1.6m and doubling capacity, Sarclad opened a new facility on the Advanced Manufacturing Park (AMP) last year after moving from Chesterfield.

The move continues to pay off, with a number of export orders recently announced for the Rollscan inspection system that uses the latest digital electronics technology and custom application software to detect surface and sub-surface flaws of hot and cold mill rolls during the steel-making process.

One contract is an order of three units for Ternium in Mexico with another two orders for Rollscan units at both North American Stainless and Indian company, Tata Tarapur. Argentinian company, Siderar have also ordered a unit.

Sarclad is also continuing its success with its Strand Condition Monitor (SCM) despite the current difficult marketplace. The system provides accurate measurement and assessment that is essential for the production of high quality steel.

New orders have been secured from the US and India whilst upgrades have been commissioned for existing SCM systems in the UK, Holland, Belgium, Czech Republic, the USA and South Africa.

Steve Shillito, SCM project manager at Sarclad, said: "While capital expenditure for new equipment is still considered a luxury for many steel producers around the world, Sarclad continues to support its existing customer base by keeping ahead of electronic hardware obsolescence with new developments."

Sarclad's other major product is Rolltex, its Electro Discharge Texturing (EDT) equipment that is used to provide surface textures on cold mill rolls in steel-making facilities. New orders have been placed for installations in America, China, Mexico, India, Italy, Russia and Japan.

A spokesperson for Sarclad said that the contract wins were "fantastic news for the business that emphasise our wide global presence within the steel industry.

"Looking ahead at the near future, Sarclad are pleased to be able to announce that we already have EDT machines due to be built, tested and delivered before the end of this year. This includes a 72 electrode for both Pangang and VAMA in China. In addition, Novelis who are a new customer in South Korea have ordered a 12 electrode EDT machine.

"Our order book for 2014 is already filling up with projects for Alcoa in the Kingdom of Saudi Arabia for a 12 electrode machine and Chinese company Tangshan have ordered a 72 electrode machine."

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News: Investments in new Rotherham facilities paying off for manufacturers

Sarclad and X-Cel Superturn, two local companies that invested in new facilities on the Advanced Manufacturing Park (AMP) in Rotherham, are already seeing evidence that the decision will pay off after both reported strong starts to the year.

Sarclad, a provider of advanced technology products for the metals industry, has reported a number of new export orders. It has secured three major contracts for its Electro Discharge Texturing (EDT) equipment that is used to provide surface textures on cold mill rolls in steel making facilities across the world.

The first is for a machine for Alcoa, an aluminium mill in Saudi Arabia and is the first time that Sarclad has sold its EDT system into the aluminium industry.

Deals have also been secured with Marcegaglia, an Italian steel processing company based in Mantova and with VAMA, a joint venture between Valin Steel and Arcelormittal, to be installed in China.

Sarclad opened a new facility on the Advanced Manufacturing Park (AMP) last year after moving from Chesterfield. It is also continuing its success with its Strand Condition Monitor (SCM) despite the current difficult marketplace. The system provides accurate measurement and assessment that is essential for the production of high quality steel.

Steve Shillito, project manager at Sarclad, said: "Despite little activity with new steel plant projects, Sarclad's SCM continues to sell well to established steel makers and our extensive reference list continues to grow."

Over the past year installations of new SCMs have been carried out at existing customer plants in Slovakia, Turkey and Taiwan and at new customer plants in China and Canada.

Orders have also come in for a Bloom Caster SCM in Japan, a thin-slab SCM for South Korea, and standard SCMs for Indonesia, Mexico, Poland, Argentina, Finland and the USA. All of which will be installed over the course of 2013.

Repeat customers include AHMSA Mexico who are awaiting installation of their fifth unit later this year, and a fourth machine was installed at USS Steel Kosice in 2012.

Steve added: "Even during these difficult times, steel manufacturers continue to recognise the benefits and cost-savings that our Sarclad SCM provides.

"We are particularly pleased to be supplying Outokumpu Sheffield with their second SCM this year, which will replace their first unit after 21 years of continued service, which ties in well with this year's centenary celebrations for Stainless Steel - first developed in Sheffield 100 years ago."

X-Cel Superturn, a global manufacturer of machined components, was the first major company to confirm an expansion into the Sheffield City Region Enterprise Zone when the Attercliffe firm announced that it was to expand its current operations to a new 10,000 sq ft facility at the Evolution development on the AMP.

February was a record breaking month, putting the group firmly on the track to reaching its targeted £30m annual turnover. Sales of £2.2m were achieved and an order intake of £2.9m, with shipments beating records for a second month running.

In January, X-Cel appointed three key members of management to its team at the AMP site, Richard Robson as group materials manager, Ben Watson as AMP operations director and David Willis to the post of account manager.

In addition, the group is investing in new state of the art CNC machinery with the AMP site used for the production of gaskets and seals used in the petrochemical, power generation, aerospace and construction industries.

A spokesperson for the company, said: "Continued investment in the most advanced machinery coupled with a companywide commitment to attracting and retaining the brightest industry talent is ensuring that expansion and investment is continuing at a rapid but controlled rate enabling us to maintain and grow our global reputation for quality, service and commercial integrity."

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News: Sarclad opens office in China

A month after moving to a new headquarters in Rotherham, Sarclad Limited, has opened an office in China.

The provider of advanced technology products for the metals industry opened a new facility on the Advanced Manufacturing Park (AMP) after moving from Chesterfield.

The new office in Shanghai is now officially open with Sarclad keen to increase their presence in China and also increase support to their current customers in the region.

The firm is a world leader in providing technology-based products to assist metal producers reduce manufacturing costs and improve product quality.

Over the last 30 years the company has grown and expanded around the world and now supplies quality equipment to all of the leading steel manufacturers and suppliers across 46 different countries.

China is by far Sarclad's largest market with a recent large order secured for a second Rolltex EDT machine with the China Steel Corporation. The high capacity machine is used to create a fast and reliable process of providing surface textures on cold mill rolls with lower operating costs and improved environmental conditions than other texturing processes such as shot / grit blasting.

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News: Sarclad opens Rotherham HQ

Sarclad Limited, a provider of advanced technology products for the metals industry, has officially opened a new facility on the Advanced Manufacturing Park (AMP) in Rotherham.

Sarclad has relocated from Chesterfield to 13,597 sq ft of office space at the Evolution development. The move involves a £1.6m investment by the manufacturers.

The official opening ceremony was performed by Master Cutler, Pam Liversidge and the president and CEO of Heico, Sarclad's parent company.

The firm is a world leader in providing technology-based products to assist metal producers reduce manufacturing costs and improve product quality. Over the last 30 years the company has grown and expanded around the world and now supplies quality equipment to all of the leading steel manufacturers and suppliers across 46 different countries.

Pam Liversidge, Master Cutler, said: "Manufacturing is what the UK needs to be based on. Sarclad is a name with a history of quality, and is based on the three "I"s of innovation, investment and international trade."

El Roskovensky, president and CEO of Heico, said: "Heico has owned Sarclad for 12 years, during which time it has always been profitable, which is quite an achievement in the current climate.

"Some companies which operate globally want to move their manufacturing to lower-cost areas of the world, but Sarclad has found a way of expanding in its own back yard, and Heico has fully supported this expansion."

Keith Shillam, president and managing director at Sarclad, added: "As the world markets and economies become more complex, more volatile, more demanding and often more uncertain than any of us have ever seen, we are now repositioning our company to venture into further product and market developments, bringing state-of-the-art solutions to difficult problems.

"With a customer base spread over 46 countries, we have a service centre in the heart of the American steel industry in Pittsburgh, and have just opened another in Shanghai to serve China, by far our largest market, and we are considering opening one in India.

"The ethos of the Advanced Manufacturing Park aligns very well to Sarclad's core values. It's about creating value, creating jobs and putting UK manufacturing back on the map through innovation, creativity and excellent customer service.

"This task can't be accomplished without the best people, and I am very proud of the fantastic team I have at Sarclad."

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News: Sarclad's £1.6m Rotherham investment

The move to Rotherham by Sarclad Limited will see the provider of advanced technology products for the metals industry invest £1.6m and double the firm's capacity.

Last week, Sarclad announced that it is relocating from Chesterfield into new larger premises at the Evolution development on the Advanced Manufacturing Park (AMP).

The 13,597 sq ft of office space is the largest letting at the development by UK Strategic Partnership Ltd, a joint venture between Harworth Estates and Strategic Sites.

The firm employs 65 staff and specialises in world-leading products and applications for measurement, monitoring and quality improvement in the production and rolling of steel.

The new manufacturing centre and offices will allow for up to 100 per cent increase in capacity and the firm hopes to grow and boost staff numbers over the coming months.

Keith Shillam, managing director of Sarclad said: "We have great ambitions to grow and enter new markets with our strong reputation and client base. We have seen a massive increase in demand over the past few years and we needed a much larger facility to allow for future expansion.

"We now have the platform from which to leap forward and grow organically but also by acquisition if appropriate. We are excited about what we see as a massively positive development in Sarclad's 35 year history."

Lambert Smith Hampton advised on the deal and Grant Thornton is the firm's auditors and advisers.

Paul Houghton, partner at Grant Thornton in Sheffield, said: "Sarclad is a great manufacturing success story and is exactly the type of business that can help the region's economy to grow and recover. The newly announced Enterprise Zone is the perfect location for this type of growing high tech manufacturing employer.

"Keith has led a transformation of the business with a brand new management team over the past few months. With a first rate reputation within its markets and a strong pipeline of international orders, we expect to see Sarclad grow at its new base and fly the flag throughout the world for this region's manufacturing expertise."

Over the last 30 years Sarclad has grown and expanded around the world and now supplies quality equipment to all of the leading steel manufacturers and suppliers across 46 different countries. Turnover grew to £10m in the year to December 2011 with a raft of contract wins from metals manufacturers across Europe, the Far East and the Americas and expects to grow turnover by more than 50 per cent in 2012.

The new facility is set to become operational in May and an open evening is planned for May 23.

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News: Sarclad take space on the AMP

Sarclad Limited, a provider of advanced technology products for the metals industry, is relocating on to the UK's premier Advanced Manufacturing Park in Rotherham.

Sarclad's relocation from Chesterfield to the 13,597 sq ft of office space is expected to boost the local economy and create additional employment opportunities.

The largest letting at the Evolution development by UK Strategic Partnership Ltd, a joint venture between Harworth Estates and Strategic Sites, was advised by Lambert Smith Hampton (LSH).

The firm is a world leader in providing technology-based products to assist metal producers reduce manufacturing costs and improve product quality. Over the last 30 years the company has grown and expanded around the world and now supplies quality equipment to all of the leading steel manufacturers and suppliers across 46 different countries.

Keith Shillam, managing director of Sarclad said: "We're delighted to be relocating to the Evolution phase at the Advanced Manufacturing Park. The bigger space better suits our plans for growth and to be part of a development which is fast becoming world known as the centre for advanced technology cements our commitment to providing only the very best quality products to our client base."

Ed Norris, surveyor at LSH in Sheffield added: "Sarclad is an extremely forward thinking company, with big plans to continue to grow and expand across our region and throughout other countries, so we're delighted that they will be taking up residence in South Yorkshire, they will bring a welcome boost to our local economy."

Recent moves to the Evolution units include Carbolite and X:Cel Superturn. They join leading names on the AMP including Boeing, Rolls-Royce and Dormer Tools.

Shaun O'Brien, investment manager at Harworth Estates (a division of UK Coal plc), said: "The Advanced Manufacturing Park was built to capitalise on the exceptional engineering and manufacturing expertise amassed in the South Yorkshire area, and to further strengthen that capability in order for the region's companies to remain globally competitive. So it's great to see that it's becoming a magnet for advanced companies such as Sarclad."

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