Castlet Win The East Midlands World Wide Exporter of the Year Award - Lincolnshire Chamber of Commerce and Industry, UK

Castlet entered the niche market of High Voltage Power Supplier for Electrostatic Precipitators in 1974.  These products are part of the gas cleaning process to reduce emissions at power stations, steel works, cement factories, etc.  The UK market is small and by 1982 over 80% installed units in the UK had been manufactured by Castlet, who had updated existing equipment as well as supplying new plants. In order to maintain sales levels and grow it was necessary for Castlet to export and the company would not be here today if they had not taken this decision.

Challenges in business exist for both home and overseas sales. Castlet’s experience over the years has been that the challenges faced when tackling overseas markets are no different from those created by domestic sales. Also that challenges are the same whether a new or experienced exporter. Challenges have to be overcome by a positive approach and seeking advice from others such as UKTI, if necessary.   Possibly the questions are less later on in the process.

By operating internationally Castlet can justify significant research and development and amortise sales over as wide a market as possible. Every business is different, but this is the Castlet’s key to success. Their aim to have the best products world wide has been instrumental in Castlet becoming the leading supplier in the majority of countries, encompassing all 5 continents.  The increased revenues from higher sales allow more research & development to take place.

This is an excellent time for British companies to be exporting as Britain has such an advantage in exchange rates with the Euro which has become a significant dealing currency around the world. Because of these factors, last year Castlet achieved 20% net profit of sales; an exceptionally high figure for a manufacturing company.

All this could not have been achieved without a highly skilled and dedicated workforce. Castlet has 26 agents/partners world wide, all of whom are part of a strong team, and they have all played their role in the company’s success. This world wide network is not only responsible for sales but also for ensuring that Castlet continues to develop the products which customers will need in the future.

Selecting the right agent/partner in a given territory is as important as selecting key employees within a company.  In both cases it is not always possible to get it right the first time but the solutions are the same in both cases.  Any deal must be well balanced to ensure an agent/partner has adequate remuneration for effort; otherwise the partnership will not work.

At the present time Castlet has a forward order book equivalent to last years sales, but spread over 3 years. This is because of a very large order in Kazakhstan where they have delivered the first of 6 sets of equipment for a power station undergoing refurbishment

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They have capitalised on their success by entering new markets and have recently gained a new customer in India for a large order on a short delivery time. These are significant challenges for all staff who are learning very quickly the exact requirements and needs of the new client in a different market.

To ensure that Castlet is ready for the challenges ahead they have taken on new staff including 3 apprentices. This year 12% of Castlet staff attend Lincoln College for training one day each week.  The company firmly believes these are steps which must be put in place to ensure that the company has a well trained workforce for future challenges.

For the past two years, Castlet has been developing a new product in a Knowledge Transfer Partnership (KTP) with Nottingham University. This high frequency, high voltage power supply will give the company significant advantages over all world wide competitors. At present developments are under way to formulate a strategy thereby ensuring a significant impact in order to justify the time and expense of the R&D. Castlet believes that 2010 will be a very exciting period for them.