A North East manufacturer of specialised parts for car batteries says lower raw material and energy costs has helped it boost operating profits.
Entek International makes polyethylene separators used in the production of lead acid batteries by customers around the world. New accounts for the Cramlington-based firm, which is US owned and has sister sites in India, China and Japan, show it doubled operating profit to £4.1m in 2024, while turnover was broadly flat at £48.4m.
The documents show Entek's sales were up 11% during the year thanks to sales to South America, which were previously serviced by a US sister company. Despite the uplift, Entek said price reductions and Sterling depreciation against the Euro meant sales value was largely inline with the previous year.
The Killingworth plant employs about 137 people, including 115 in production roles. The company began production in the late 1980s and has become a leading supplier of separators worldwide. Most of the firm's products are said to have required years of cooperative development with customers, including extensive testing and approval processes.
Jeffrey Grimm, executive vice president at Entek, wrote in the accounts: "Entek is a world leader in the extrusion and extraction of highly filled microporous polyethylene separators used in the manufacture of automotive lead-acid batteries. Since commercial production first began in 1989, the company has grown to be a leading supplier of high-quality polyethylene battery separator material to customers worldwide.
"Entek's commitment to manufacturing excellence and superior customer service has enabled the company to distinguish itself from its competition and forge strategic alliances with the world's leading automotive battery manufacturers. Entek will continue to exploit its position as the industry's technological and cost leader and take advantage of the growth opportunities presented by the continuing evolution of automotive power systems technology."
He added: "The directors expect the company's markets to remain very competitive and that the high demand for its products will continue in 2025. The company expects to generate positive cash flow throughout 2025."
Elsewhere in the accounts, Entek reported on CO2 emissions from the North East plant - showing total emissions grew from 17,214 total carbon dioxide equivalent to 18,467. But the intensity ratio of those emissions fell from 222.18 to 211.36.
A report published last year showed Entek at the forefront of the competition in the market. Researchers then estimated the global battery separators market would be worth about $11.9bn by 2029, with rapid growth expected in the next few years.
Last year, part of the Entek group was given a $1.2bn loan by the US Department of Energy to finance a new factory in Indiana, which will make lithium-ion battery separators, mostly for use in electric vehicles. The plan is for the plant to provide sufficient separators for roughly 1.9m mid-sized electric vehicles.
