Armagh generator firm powers into new markets
A small Co Armagh engineering company is planning to double its workforce over the next six months as its international business grows, it was revealed today.
Craigavon-based AJ Power employs 50 people designing and producing diesel generators on the Carn industrial estate and intends to push that up to 100 before the end of the year.
Around 30% of the jobs will be for engineering graduates and the company has already signed up several from Queen’s University in Belfast when they leave this summer.
Despite only having its first full year of trading in 2004, AJ Power is already exporting to 40 countries around the globe.
The company was set up by Ashley Pigott, a former director of FG Wilson in Larne, and several senior colleagues.
They left the Co Antrim company – one of the largest producers of generators in the world – after it was taken over by US giant Caterpillar.
They decided there was room in the market for them alongside the big guns and that they could be more responsive and flexible than the competition.
“Everybody said were barking mad – we are barking mad. People said it couldn’t be done, but its like a challenge and I think we are succeeding,” said Mr Pigott who has taken on the role of Managing Director of the company.
The company sold 1,000 generators – 75% for export – in its first year. By comparison FG Wilson sells over 50,000 a year.
But AJ Power is ambitious. “We expect turnover this year to be £6m (€8.7m) and we expect next year’s will be well in excess of £12m (€17.5m),” Mr Pigott said.
“It is a growth business, we are going to keep on doubling the business year after year after year,” said a confident Mr Pigott.
He is convinced AJ Power can mix it with the international giants, including the one they used to work for.
“The first thing we did was draw up a business plan to convince ourselves. The cost structure had to be right and we know we can compete with any business. We are a lot faster on our feet and we can undercut them,” he said.
“If a man in Botswana wants a generator with pink spots on it, he gets a generator with pick spots, and he gets it fast.”
Developing countries like those in Africa hold huge potential for the makers of generators. “We take power for granted here, that is not the case all across the world,” said Mr Pigott.
Mobile phones companies are expanding across the globe, but when a operator puts up a transmission mast in the middle of the desert or jungle there is no convenient power point to plug into and a diesel generator is needed to create the electricity to make the mast work.
Hospitals need generators in case the mains power breaks down. Even industrial users use generators to cut their electricity costs at peak times.
“We are tiny in real terms, but there are gaps in the markets for people with the skills.”
Caterpillar won’t see the Co Armagh team breathing down their necks just yet, but the game plan drawn up at the very start has 2009 marked down for entry into the North American market.
