THERE are several well-known manufacturing companies in the North-East that that trip off the tongue – Nissan, Nifco UK and steel maker SSI UK.

One that has been quietly going from strength to strength since the early 1980s is Reece Group Limited, a privately-owned business and the holding company for a number of North-East engineering businesses – Pearson Engineering, Responsive Engineering, Velocity UK, Pipe Coil Technology and Reece Innovation.

Operating in the defence, oil and gas, power generation, construction, medical and subsea markets, Reece Group is a family business, led by Chairman John Reece, making grand plans.

“Simply put, we are a modern innovative engineering business creating wealth and employment in the North-East,” says Phil Kite, chief executive officer.

“Recent trading success has enabled us to invest and diversify our operations with no reliance on government funding. We have an appetite to grow both organically and through acquisition.”

A move that certainly looks to cement Reece Group’s reputation as a North-East manufacturing giant is the Group’s recent relocation to Newcastle's historic Armstrong Works, after a £20m transformation creating 100 jobs.

Once referred to as the world’s first defence factory and known to many as the Vickers tank factory, the Armstrong Works has been a centre of British engineering for more than 160 years since it was founded by one of the country’s greatest industrialists and philanthropists Lord Armstrong.

Employing 25,000 people in its heyday, over the years it has produced tanks, locomotives and aircraft. The factory made the first breech-loading gun for the war in Crimea and Valentine tanks in the Second World War. Both the hydraulics for Newcastle’s Swing Bridge and London’s Tower Bridge came from the factory, which also produced parts for the Spitfire and the ‘bouncing bombs’ used by the Dambusters.

The redevelopment turning the vast structure along the Scotswood Road into the new home the Reece Group bolsters Tyneside’s legacy as a world leader in innovative engineering.

With major investment from the Reece Group, the legacy of Lord Armstrong continues into a new era as the landmark site becomes home to the Group’s world-class engineering companies and Innovation Centre.

“We never considered changing the name Armstrong Works. We’re very proud of its legacy and feel privileged to be based in premises synonymous with the best in British engineering,”says Mr Kite.

Last week, Reece Group opened its doors to invited guests for a tour and demonstration at its new headquarters.

“It has been very much like moving house, albeit on a much greater scale. We now have the opportunity for the majority of our companies to be located under one roof, whilst ensuring each keeps its own identity,” says Mr Kite.

There’s very much a sense of old meets new in the vast premises. The open plan offices are branded for each business and there’s a smell of fresh paint in the meeting rooms – sound proofed due to ‘need to know’ defence contracts.

Around the modern offices images of North-East engineering icons appear in the breakout areas reminding employees of the heritage they are now a part of. There’s a café, a shop – especially useful to those requiring last minute birthday cards for their spouses.

“We want our people to enjoy coming to work and have created a place of work fit for purpose for the years ahead.” adds Mr Kite. “We have invested in new equipment, moved our existing machinery and are making use of original machines so big the building was built around them,” he says, referring to a 600 tonne press, in situ since 1937.

Although the importance of engineering heritage is hard to miss, there is no doubt Reece Group is looking to the future.

It all started in the 1980s as a break out business from Newcastle University, developing plough technology to bury telecommunication cabling on the sea bed, through its original business Soil Machine Dynamics (SMD). This same plough technology was then developed in Pearson Engineering, into a defence application to clear land mines.

During 2008 to 2012 Pearson Engineering won orders worth over £400m for its SPARK mine roller which protected troops from mines and IED’s and was responsible for saving the lives of many allied soldiers in the Iraq and Afghanistan conflicts.

On the back of this success the Reece Group was able to invest in a diversification program which has seen it break into the oil and gas, power generation and road construction markets through the acquisition of three businesses, Velocity UK, Responsive Engineering and Pipe Coil Technology. The Group has also invested £3m in the creation of its own Innovation centre.

On the back of the move into the Armstrong Works, Pearson Engineering is now able to provide defence manufacturing services, including the capability to undertake armoured vehicle production, refurbishment and upgrade services. This has led to a contract to undertake a structural assessment of the British Army’s Challenger 2 tank fleet.

“Innovation is very important to us,” says Mr Kite. “Each of our companies has a dedicated Research and Development team and Reece Innovation Centre Limited is a multi-disciplinary team, whose core competencies span mechanical engineering, electronic engineering, materials science, sensor technology and signal processing.”

“We’re a diverse group and operate in a range of markets that can be susceptible to flux, therefore by investing in innovation around our core strength of mechanical engineering, designing new products for new markets, we are better placed than most businesses to deal ever changing market conditions”.

After announcing new jobs and expanding into new premises, does Reece Group have plans to further expand?

“Yes,” says Mr Kite. “Whether that be organically or by acquisition, we’re always looking for ways to stay at the forefront of our industry. We will never be complacent,” he explains

One way Reece Group keeps ahead of their competitors is by nurturing their existing talent and safeguarding their future workforce.

“The skills shortage is a serious problem, not just in the North-East but around the UK. Over 10 per cent of our employees are apprentices and we train them well so that at the end of their four year apprenticeship they are well-trained, dedicated employees with a bright career ahead of them.

“The gender imbalance in engineering has not gone unnoticed and we are working on several projects with schools and universities to correct the disparity. Apprentices bring a breath of fresh air into an organisation and female engineers are an untapped resource,” says Mr Kite.

Reece Group work with local schools to answer, “What is engineering?” But this is certainly not a case of ticking the Corporate Social Responsibility box.

“We don’t have independent stakeholders to keep happy or targets to reach. We are a family business and our stakeholders understand the importance of educating children. We encourage our employees to work with schools to explain what we do because we’re passionate about our industry, the region we live, and are genuinely excited to share the opportunities a career in engineering can offer.”

“Our employees invest their time to talk about potential careers and show both girls and boys the potential of engineering. Not because they have to but because they want to. This started small but our team enjoyed it so much we now have many STEM (Science, Technical, Engineering, Mathematics) Ambassadors,” adds Mr Kite.

One such STEM Ambassador is Tim Rutter, Director of Pearson Defence Manufacturing Services. “We have a determination to do something different,” says Mr Rutter.

“We want to show what real engineering is and ensure young people have all the information they need to make an informed choice about their future,” he adds.

In October, Reece Group will open its doors again to visitors. But rather than current business leaders, it will be potential engineers and leaders of the future who will be visiting.

“Working together with EDT (Engineering Development Trust) we have invited 30 Year 10s, aged 14 to 15, to attend demonstrations of what we do at Reece Group. There’s only so much we can describe in a classroom, through our STEM day, they can see with their own eyes.

“There are so many career paths available to young people. We want to show them that whether they decide to go down the graduate or the apprenticeship route, engineering is an exciting career. And that’s not just because we love engineering,” says Mr Rutter.

It’s likely the impact on the Scotswood Road from Reece Group will be felt beyond the employment it brings to the area.

Anne Reece chairs The Reece Foundation, set up by the Reece family to support good causes. Over the last ten years it has provided donations to good causes totalling £15m, primarily to encourage more children to select a career in the sciences and engineering. Furthermore in the West End of Newcastle the Group has supported organisations helping business start-ups, youth development, education and sports clubs.

“It’s a very exciting time for us,” says Mr Kite. Currently, with 50 per cent

of sales coming from overseas markets, it is clear Reece Group is very proud to be flying the flag for British manufacturing and engineering.

“It angers me when people automatically claim countries like Germany are better at engineering than us. History has shown how good we are and that is continuing today; we should broadcast our successes far and wide,” Mr Kite adds.

James Ramsbotham, Chief Executive, North East Chamber of Commerce, says, “The Reece Group is an organisation with a strong history, now based in iconic premises with links to a proud heritage.

“This is a diverse engineering company who does not stand still. They are paving the way for their future and laying strong foundations for the next generation of North-East engineers. There is very much the impression that Reece Group is on the cusp of something very special.”