The story of Smith & Nephew
SMITH & Nephew, originally a humble pharmacy and one of Hull’s biggest success stories, is set to leave the city for a new site in Melton West Business Park.
The move has “disappointed” Emma Hardy, Hull West and Hessle MP, and “delighted” David Davis, Haltemprice and Howden MP, whose constituency the company will be building its new facilities in.
But who are Smith & Nephew and what does the firm specialise in?
Who founded Smith & Nephew and when?
Smith & Nephew was founded in Hull’s Victorian heyday in 1856 by Thomas James Smith when he set up a small family enterprise pharmacy. He also started selling cod liver oil in 1858. On his death in 1896, he was succeeded by his nephew, Horatio Nelson Smith.
How did Smith & Nephew become an international giant?
The First World War was key to the firm’s expansion from its humble origins.
Horatio Nelson Smith substantially developed the company and in 1914 at the start of the First World War obtained a lucrative medical contract which transformed the firm’s fortunes. He met the envoy of the French President and the company was awarded a contract worth £350,000 for the supply of surgical and field dressings, to be delivered in five months.
It was the largest order the firm had ever handled but was successfully delivered on time. As the war dragged on, more orders followed with Smith & Nephew providing medical supplies to the armies of Britain, France, Belgium and Serbia and on their entry in the war, the American Army and American Red Cross.
By the war’s end, TJ Smith Limited as it was then known had taken over most of Neptune Street, Hull, the site which the firm still occupies. The number of workers had also risen from 50 to 1,200.
What does Smith & Nephew specialise in?
Smith & Nephew have retained their medical routes and remain medical product makers. In 1937, it became listed on the London Stock Exchange and New York Stock Exchange listing followed in 1999.
It has been at the forefront of medical product innovation. Elastoplast was produced as an experimental bandage in 1927 and the company were the suppliers of special low temperature plasters for the first-ever full ascent of Mount Everest in 1953. Their products enabled climbers to send back their camera films sealed and airtight. More recently, in 2001 Oxinium was introduced, improving the service life of joint replacement systems.
By the late 1990s, the firm was a
global healthcare conglomerate which made various medical devices, personal care products and traditional and pioneering wound care treatments. In 1998, it restructured to focus on three primary areas: wound management, endoscopy and orthopaedics.
Over the years, the company has absorbed other businesses, including buying out Healthpoint Biotherapeutics in 2012, specialists in the bioactive areas of advanced wound management, and purchasing Arthrocare in 2014 to build the company’s sports medical business.
Smith & Nephew was added to the FTSE100 index in 2001. Today, the firm has a presence in over 100 countries and employs over 15,000 people.
What does Smith & Nephew still make in Hull?
The site in Neptune Street, Hull, has remained the company’s headquarters. High technology wound treatments are manufactured in Hull including DURAFIBER and ALLEVYN Life. More than £50m has been invested in capital projects at the Hull site since 2011. The factory was damaged in the 2013 floods, which also led to Smith & Nephew investing £3m in flood defences.
Why is Smith & Nephew moving from Hull?
Smith & Nephew announced on June 9 they were to invest £80m to develop a research and development and manufacturing facility at Melton West Business Park. The new site was chosen as the closest available option to the current Neptune Street facilities.
It is expected to be operational from 2024. Smith & Nephew worked with Hull City Council to look at options within Hull, but “were unable to find an appropriately sized and deliverable site within the city”.
The future of the Neptune Street facility is uncertain, with the firm stating: “Smith+nephew is committed to continuing to work with the City Council and other stakeholders regarding future options for the current Hull site.”