Interview: PZ Cussons' Financial Group Director on £26 million investment

It’s easy to see why England's Northwest is a compelling choice for business investment. It’s brimming with International airports, rail links and extensive motorway networks. Not to mention offering a high-level of skills and innovation.

For all those reasons and more the producers of Imperial Leather and Carex, PZ Cussons, chose Salford to build a new, purpose-built £26 million innovation centre to coincide with it’s 125th anniversary.

The impressive site brings significant investment to the Northwest and will be followed by a move to a brand new global headquarters at the Manchester Business Park in 2010.

Why should we invest in the Northwest? PZ Cussons’ Financial Group Director Brandon Leigh tells thisismanufacturing.co.uk why it is happy it put its money in the future of the region.

What factors influenced PZ Cussons decision to invest in the NW despite opportunities to relocate to one of several worldwide locations including your biggest Nigeria?

“What we are doing in the UK is integral to our growth. Part of the consideration was: Should we exit the UK as many companies do? But, from a cost point of view, the decision was neutral. We could have bought a facility in Asia, in Eastern Europe, closed down the UK and the cost would have been the same, possibly cheaper. One of the key drivers is strategy. We’re not a global brand. We have local brands in local markets. Our UK business has a high level of innovation, so having a manufacturing facility close to where we are selling all our products, we concluded, was very important. When you are having discussion with a Tesco or a Sainsbury’s, having that facility to react to changes in demand was very important. Overall it was a key factor, as were the skills of the work force."


What are the other benefits of investing in the UK?

“There’s been a general trend away from investing in the UK, as China and India have evolved. The current climate has proved the world doesn’t always go in one direction. If you look at the effects of the current global crisis, it’s been important that we haven’t been dependent on overseas operations; it’s meant we haven’t been subject to volatility in exchange rates. We have a fantastic new manufacturing base here, which has carried on working exceptionally well. We’ve created excellent partnerships with local suppliers, which means we can deliver fast, because the suppliers understand our business, and they can supply us on a ‘just in time’ basis.”

What difference does a reliable infrastructure make in your choice for investment?

“Infrastructure has been the main driver behind the location of our new head office, which opens in April 2010. It’s literally next to the airport in the business park. Well over 50% of our business is based overseas so being by the airport was the right thing to do. The local infrastructure in the Northwest is excellent. We are just upgrading our distribution with a company called Great Bear, moving the whole of our distribution. Things will leave the factory and go to our new facility in Oldham and the products will then be distributed out, so we’re providing a tight efficient infrastructure in the UK, which is going to be cost advantageous to say manufacturing a shower gel in Poland, Thailand and then transporting that liquid back to the UK at high freight rate.”

Where does the Northwest fall down?

“Transport links are good but roads are getting busier. The transport initiative (aka 2009’s failed £2.8 billion of investment in public transport, cycling and walking) unfortunately got led by ‘congestion charge’ headline and not and investment’ headline. We supported the tax because we felt having that investment in the area was the right thing to do, however, as long as the airport grows and the Metrolink is extended the infrastructure will grow. The Northwest is very resourceful and innovative and we will react to whatever problems are put in our way.”

Tell us why did PZ expand at this time?

“We got to a manufacturing capacity level at our old Kersal Vale factory and that was the key driver for looking at an expansion plan, coupled with the fact our UK business continued to grow and therefore needed further investment.”


Will the Northwest lead the way in the future of manufacturing?

“I think it will. Manchester is the second city outside London on a number of fronts. That’s become clear just from seeing the growth in Manchester itself, in terms of the airport. To me there aren’t many negatives about the region and there’s huge capacity, plenty of good sites available. And probably the most important thing is people and good people in the region at all levels from a white collar and as a business you can attract good talent without a doubt.”

Did you know?

PZ Cussons Innovation Centre site was purchased from the Northwest Regional Development Agency and took two years to build, with the first phase starting in January 2007 and the second phase completing in January 2009.