News - Wales

Warwick hopes to clean up in the US

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Warwick International, the cleaning chemical company based in Flintshire, is targeting the North American market as consumers there switch to European-style washing machines.

Warwick, based in Mostyn, makes a bleach additive for washing powder used by two billion people every year.

Up to now, the company has done little in the US market because top loading washing machines, which use a different type of powder, have been more popular there. But front loading machines have enjoyed a surge in popularity in the US in recent years.

Now Warwick has set up subsidiary in the US to tackle the market, which could provide a further boost to growing sales.

Finance director Steve Williams told Insider: "We believe the US is a growing market. Now we have a presence on the ground, rather than visiting three or four times a year."

The change in the US market is partly driven by cost saving and environmental concerns. Top-loading washing machines typically use more water and energy.

Williams said Warwick was heading for growth in 2012 after consolidating in 2011. He said: "Trade in 2011 was flat, rather than bounding along. But in this climate, flat is not too bad. Now we are starting optimistically after a difficult year."

The company has renegotiated some long term contracts which should generate good results soon. "We have a small number of quite powerful customers and quite powerful suppliers, so we are in a strong position. And we have our treasury position sorted out."

In September 2011, Warwick unveiled plans for a £10.7m investment at Mostyn to increase its production rate and flexibility through software.

Warwick International features in Wales Business Insider's Profit 50 ranking of the most profitable companies in Wales, which will be published in the March edition of Wales Business Insider, out soon.

 
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