A FLEDGLING Fife fabrication firm has surpassed its three-year business plan in just three months after securing a major £4 million contract.
Synergy Fabrications was founded late last year and only took over the vacant Houstons of Cupar site at Cuparmuir Industrial Estate in December.
The firm had set a target of achieving revenues of £1.4m for the first full year in operation, and expected to build to around £2m by year three.
However, it decided to bid for a major contract being tendered by Stolthaven, part of multi-national shipping and storage group Stolt-Nielsen, for works at its fuel storage facility in Dagenham, Essex.
The company was up against established UK and European firms for the work but found itself shortlisted in the competitive tender process.
Confirmation that it had won the contract came through late last week, and Synergy has been busily preparing for the work to begin.
The firm is in such an early stage of its development that it is still purchasing and commissioning some of the equipment it needs to carry out certain fabrication processes.
The company was formed by managing director Gary Mitchelson and fellow former Riverside Engineering and Rigmar Fabrication executive Jim Lynch, who has taken on the role of technical director.
Supply chain specialist Alan Westwood, who also worked at Rigmar Fabrications but had previously been with Fife papermaker Tullis Russell, completes the executive team in a business systems role.
Mr Mitchelson said that securing the Stolthaven contract which involves Synergy supplying 11km of spooled piping and 350 tonnes of fabricated steel work was a major coup and significantly accelerated the company’s growth plans.
The firm initially started with just seven employees but the contract, which will provide several months of intensive work for the group, will require upwards of 40 workers to complete.
Mr Mitchelson said he was confident that Synergy would be able to pick up more work and retain a sizeable skilled workforce going forward.
“The technically challenging and very fast-track project commences immediately, and will involve pre-fabrication works at the company’s premises plus extensive works on site in Dagenham,” Mr Mitchelson told The Courier yesterday.
“Although the company only started trading in December, a comprehensive bid was prepared for the works, which led to Synergy being the only UK company from the European-wide bid list to make the shortlist, and finally won the tender against a European competitor.
“The key factors in winning the contract were the quality of the bid package, the innovative approach to the installation works to achieve the very demanding timescales, and the industry reputation of the principals of the new company.
“Work will start almost immediately and will continue over the next four months, and will create a significant jobs boost for Fife.”