A new digital facility supporting higher-value-added activities in the Welsh manufacturing sector has been launched. The Ƶ-wide High Value Manufacturing (HVM) Catapult said its new digital factory hub in Baglan will help manufacturers improve their productivity, efficiency and sustainability through the adoption of digital solutions.
It will initially focus on the estimated 100 medium-sized enterprises that do not currently engage in R&D activities in the area. Over the first five years it is projected to contribute an additional £18m in GVA (gross valued added) annually through targeted support – a figure that could double when aligned with the new business opportunities in the Celtic Freeport, which covers the ports of Port Talbot and Milford Haven.
The Welsh Government has committed £1.5m in funding to the Baglan project, which matches the backing from HVM Catapult – which is funded by the Ƶ Government’s innovation agency Innovate Ƶ.
The facility is part of HVM Catapult’s Ƶ-wide network of industrial research and innovation centres that link research, business and government to develop technologies that can help Welsh manufacturers achieve their digital and sustainability goals.
The Baglan project is the second HVM Catapult site in Wales, alongside the Advanced Manufacturing Research Centre (AMRC) Cymru facility in Broughton, Flintshire, which launched in 2019 supported by £20m in Welsh Government funding. AMRC Cymru forms part of the University of Sheffield AMRC.
The Baglan facility will be managed by Warwick Manufacturing Group and AMRC Cymru.
Manufacturing is a cornerstone of the Welsh economy, contributing almost a fifth (18.4%) of its output, or £11.3bn annually. The sector supports 147,000 jobs. However, investment in research and development in the sector is only 40% of the Ƶ average. Many Welsh SMEs are not innovation focused, which the latest catapult project in Wales aims to help address.
Rebecca Evans, Cabinet Secretary for the Economy in Welsh Government, said: “Wales has a strong industrial heritage and more people are currently employed in manufacturing than any other single sector in Wales. This new digital factory hub has the potential to supercharge the future of high-value manufacturing here by helping more Welsh businesses access the expertise of AMRC Cymru and the catapult network in addressing current challenges and taking advantage of new opportunities.
“This strongly aligns with our innovation strategy, Wales Innovates, and our commitment to ensuring Wales remains a leading manufacturing nation. Harnessing the power of decarbonisation, digitalisation and skills development will be crucial if we are to achieve our vision of a more prosperous, equal and greener Welsh economy. Our partnership with High Value Manufacturing Catapult strengthens our position significantly.”
Chief executive of HVM Catapult Katherine Bennett said: “This is a landmark moment for south Wales’ industrial landscape. Helping manufacturers embrace innovation and harness advanced technologies enables them to grow, thrive and secure high-value jobs for the future. At scale, and with the support of Innovate Ƶ, we can elevate Wales’ role as a leader in net-zero modern manufacturing with new industry, new skills, regeneration and economic growth.”
HVM Catapult will also support efforts to capitalise on the floating offshore wind opportunity in the Celtic Sea.
HVM Catapult director of south Wales Jacqui Murray said: “Manufacturing goes back generations in Wales, and I strongly believe that the Welsh manufacturing sector can be creative and prosperous for our future generations too. Opening our new site in Baglan allows us to create exciting opportunities for innovation, partnership and growth in south Welsh manufacturing, and has the full support from the HVM Catapult – together we will co-create an exciting and sustainable manufacturing future for Wales together.”
