Trax JH Ltd secures £4 million contract with Renault 0
Trax JH, a car parts supplier have won a £4 million contract with Renault which essentially safeguards 50 jobs at the firm.
Trax JH Ltd’s wheel balance weights will be installed onto Renault and Dacia cars. The vehicles in question are developed in countries such as France, Spain, Russia as well the South American countries of Brazil and Argentina.
Trax JH Ltd currently has plants in Welshpool, Newtown and Powys. The company, based in mid Wales have been established for over 20 years. They have stated that 70 per cent of their sales come from exports to the rest of Europe. The company have also mentioned that other contracts are waiting to be secured at the same time.
The company are hoping to expand their business beyond continental Europe to the likes of Brazil, Russia and India. These markets in particular are experiencing rapid growth rates and are continuously on the up. The Chairman has claimed that expansion to these countries could occur before the end of the year, which would wrap up a wonderful 2012 for Trax JH Ltd.
However not everything is rosy for the company at present. They have stated that business has taken a slight tumble thanks to the economic downturn at the start of the year along with the current European car crisis. That is exactly why securing the Renault contract could not have come at a better time. Many employees of the company would have been extremely worried about their future following a downturn in business but the contract means that 50 jobs will be secured in the country.
The Managing Director of the company, John Halle said “It took us seven years to get the business, which obviously was a long time. This kind of business doesn’t come along every day and it really means that you can build on it for the future, which is very good news for us and everybody. We have got other car company business in the pipeline which will hopefully cement our growth even more in this respect. It’s really excellent news for the company and for everybody in the surrounding area.”
A spokesperson for Trax JH Ltd confirmed that they have received support from HSBC and Finance Wales in the past, who invest in small and medium sized businesses.
The French car giants are currently not performing as well as some hoped, along with other major mass car producers in the European region.