WOLVERHAMPTON, England—Northern Gas Networks Group has extended a framework agreement with MacLellan Rubber for the supply of gasket sealing materials and products, the latest in a series of positive developments at the England-based rubber parts company.
The original framework agreement, which started in 2014, will run for a further year up to September 2018, accordinga statement from Wolverhampton-based MacLellan.
The company linked the contract extension to its experience in working to tight deadlines while maintaining the quality standards demanded by the gas sector.
The announcement follows year-end accounts showing solid business growth at MacLellan, as the company adapted to recent changes.
"Overall, we increased sales by 7 percent in what was a busy year for the company in more ways than one," Andrew Onions, a director at MacLellan, said in the release. "Despite a backdrop of financial, political and domestic upheaval, our performance has bucked the trend and been extremely positive."
Last year, MacLellan relocated from its Neachells Lane home of 12 years, to its current site at nearby Planetary Road Industrial Estate. The move enabled the company to streamline warehouse procedures and increase stock by 50 percent, and it said the overall cost base has also provided a buffer against external material prices increases.
Earlier in 2017, MacLellan purchased the trading element of Thames Valley Supplies who had been a customer, a deal that created some unwanted ripples in the market.
"By acquiring part of the business, we were able to grow the trading side of MacLellan's which would help us spread the fixed cost base and assist in our drive to keep prices low," explained Simon Winfield, a director at MacLellan.
"However, this prompted unfounded rumors in the market of our foray into gasket cutting, despite our not possessing the expertise or equipment to do so," he further explained. "We continue to reiterate our position that we do not cut gaskets, however from time to time, we source gaskets from a variety of customers as reciprocal business."