Nissan parts supplier Unipress has seen a significant hike in profits amid demand created by the car maker's e-Power Qashqai model, and has lined up future work with Jaguar Land Rover.
Turnover at the Washington-based supplier of press-formed parts saw operating profits rise to £8.99m in 2023, compared with £2.79m the year before. That came amid a more modest increase in turnover from £173.9m to £177.5m.
New accounts show staff numbers at the Japanese-owned business increased from 853 to 913 during a year in which it was successfully chosen to supply parts for Nissan's next generation electric vehicle. The documents, signed off at the end of May, show Unipres was also vying for business on the next generation Juke and Qashqai models which will also emerge from the Sunderland factory.
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Meanwhile, bosses said concerns about the lack of semiconductors in the automotive industry were unlikely persist in the future, though they warned about the significant increases in utilities since April 2022 with markets remaining volatile despite Government support offered in 2022 and 2023. Similarly, they said labour costs continued to pose challenges.
Despite those headwinds, Unipres said it continued to invest, including £4.2m spent on improvements to ageing machinery and assembly areas. And capital investment is expected to ramp up over the next two years as the firm, which also ran a Honda-supplying plant in Aston near Birmingham until 2021, prepares its production lines for new models.
That investment is expected to be funded via a short term, £30m loan facility in place with Japanese lender Mizuho Bank until April 2025. Other borrowings include a long term facility of £25.1m that is split between Mizuho and Japan Bank for International Cooperation that is in place until June 2025. The Washington firm’s parent company in Japan has also promised loan finance where needed.
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Writing in the accounts, Unipress (海角视频) director of finance and administration Andrew Fawell said the company had continued to improve performance in 2023 thanks to the easing of semiconductor shortages and the effect of the first full year of Nissan Qashqai e-Power production.
He added: “Our ongoing improvement plans supported by UPS ("Unipres Production System") principles along with cost ratio activity will continue to challenge and improve these key performance indicators in 2024. During the year the company achieved 14 of the 15 targeted KPls, which is the second consecutive year an outstanding achievement. These tools are key to ensure resources focus in the area that will enhance profitability.”
Mr Fawell also noted the success of the Unipres Training Academy, which the firm uses to develop apprentices and upskill its staff. Together with groups such as the North East Automotive Alliance and the Society of Motor Manufacturers and Traders, the Academy engages schools to promote careers in the automotive sector.