LFH Engineering nets six-figure contract as international sales grow
Posted on November 12, 2018
A north-east engine pump manufacturing specialist has secured a six-figure contract to provide its products and expertise to a leading supply company in the Far East.
Ellon-based LFH Engineering has secured a £100,000 contract with South Korean firm STX Engine to supply several pumps for industrial projects in Asia.
STX Engine specialise in engine production for large container ships, LNG vessels, oil tankers as well as industrial engines including engines for onshore plants, gas engines and those for railroad vehicles.
Les Hill, Chief Executive Officer of LFH Engineering, said: “International sales are a large part of our business and we are delighted to have secured a contract with STX Engine which we hope will lead to more work with them in the future.
“Scheduled to be completed in December, our pumps will be witness tested and certified by Lloyd’s Register to ensure the customer is satisfied with the high quality of work we provide.”
In addition, LFH is also working on the next stage of a multi-year contract with UDMZ, part of the Sinara Group in Russia. The latest order of £40,000 from UDMZ will see the next phase of bespoke diesel engine pumps fitted for prototype testing in the Russian locomotive industry.
Mr Hill added: “The work we are doing with STX Engine and UDMZ highlights the importance we place on increasing the level of business we do in international markets.
“This approach continues to have a significant impact on our sales as we fulfill orders from markets like Russia and the Far East where we continue to make new contacts and develop business leads to keep our order book busy throughout the year.”
LFH Engineering’s link with UDMZ has been developed over several years. It initially came around through an introduction from a design house in Germany following the successful delivery of a project with them.
The businesses then signed a multi-year agreement in 2013 which has seen LFH design and supply diesel engine pumps for UDMZ locomotives in Russia.
Mr Hill said: “There is currently a large modernisation project across the Russian railway fleet which means new locomotives and rolling stock are being developed and built for use across their vast network.
“UDMZ hope to complete the protype stages of their new engine range in 2019 and launch into full production from 2020 where we expect to see a significant increase in demand for our pumps to support their new product lines of diesel engines.”
With a workforce of 34 employees all based in Ellon, LFH Engineering specialises in the design and manufacture of diesel engine coolant pumps, and offers full in-house pump production, repair and refurbishment services.
Around 75 percent of the firm’s work comes from overseas markets in Europe, North America and Asia, including the ship repair and shipbuilding markets, the nuclear energy sector and the locomotive industry.
Earlier this year, the business reported sales of £3m for its 2017/18 financial year up to the end of March, an increase of eight percent on the previous year’s figures.
LFH Engineering also offers a full range of pump tooling and service kits along with repair and refurbishment services.