Arpal completes £400,000 transformation of its Borders’ HQ

BORDERS-BASED cleaning and detergent manufacturer RP Adam, which trades as Arpal Group, has completed a £400,000 overhaul of its UK headquarters at Selkirk.

A major expansion and reconfiguration of the factory and warehouse has created a 40 per cent increase in capacity.

The company has invested almost £250,000 in plant and equipment, including new filling lines for smaller pack sizes and a state-of-the art warehouse racking system, and spent over £160,000 to convert its heating from oil to gas, driving a 29 per cent reduction in the factory’s greenhouse gas emissions.

The two-year investment project was launched by RP Adam, which employs nearly 100 at Selkirk, to enable production to keep up with year-on-year sales growth.

The 2014-15 financial year saw manufacturing volumes rise by 11 per-cent, with a further 13 per cent uplift expected in the current year.

Martin Carroll, technical director said the group had moved onto its current site in the 1970s.

“With several new longterm contracts bedded in and a number of supply partnerships starting to bear fruit, we decided now is the time to invest in improving the entire site.”

The expansion is part of a five-year investment and growth programme, launched to mark the family firm’s 125th anniversary this year.

It has set a £20 million turnover target for 2020. The company’s last published accounts show turnover in the year to June 2015 rose from £8.1m to £9,5m, while pre-tax profit jumped from £756,831 to £1.33m. The group’s Gulf subsidiary, contributing nine per cent of turnover, paid a dividend of £425,000.

Sales and marketing director Max Adam, the fourth-generation Adam to be involved in the business added: “Our group goal ahead of 2020 is to use the experience and talent within the wider RP Adam family to expand the business at home and particularly in the United Arab Emirates, Qatar and Saudi Arabia where we have a significant presence.”

Mr Adam said: “This current round of investments underlines our commitment to managing an efficient, environmentally responsible and successful operation here in the Scottish Borders, where we have had a significant presence for the last 125 years.”