Gateshead-based Zentia is spearheading a £2 million investment to enhance its operations across its North East sites.
The initiative is rooted in boosting local manufacturing capabilities and fostering innovation, showcasing Zentia’s commitment to regional growth.
Ceiling manufacturer Zentia has announced a strategic investment of £2 million across its North East sites. This substantial funding is focused on developing Zentia’s facilities in Gateshead. The business currently employs 186 individuals across its dual sites, indicating its significant presence in the region’s manufacturing sector. With this investment, Zentia aims to advance its operations and further cement its local foothold.
Team Valley’s Zentia site now features a newly established innovation centre, designed to benefit local businesses. The centre is equipped with a conference area accommodating up to 60 people and two smaller meeting rooms. At the adjacent Team Valley site, renovations include new windows, a modern meeting room, and enhanced security features. These improvements highlight Zentia’s commitment to offering contemporary facilities. Zentia’s ceiling tiles are prominently featured throughout these renovated spaces.
Zentia’s dedication to UK manufacturing is exemplified by its £2 million investment, part of a broader strategy to increase domestic production. The firm’s goal is to localise manufacturing processes, contributing to job creation and economic development in the region. In addition to this investment, Zentia has allocated £37 million since 2020 to bolster UK manufacturing efforts, showcasing its ongoing commitment to the industry.
The recent publication of Zentia’s 2023 financial accounts revealed a 1% decrease in turnover, attributed to reduced sales volumes amid economic challenges in the construction sector. Despite this, the company reported an after-tax profit of £3.4 million, an increase from the previous year’s £2.8 million. Operating profit, however, decreased to £3.3 million from £4.9 million. These figures reflect Zentia’s ability to navigate a challenging economic environment, maintaining profitability.
Though energy cost increases pressured profit margins, with a reduced gross margin of 22.1% compared to 24.9% in 2022, Zentia’s return to pre-pandemic profitability and cash generation is noteworthy. The firm demonstrates the capacity to adapt to economic fluctuations while continuing to prioritize product innovation for sustained success.
Zentia’s focus on new product development is paramount to its long-term success. The company has invested heavily in continuous and non-continuous ceiling products, expecting these innovations to drive future business growth. Zentia’s ongoing investment in research and development underlines its commitment to delivering cutting-edge solutions to the market.
Zentia evolved from Armstrong Ceilings and has established itself as a leader in the modular suspended ceiling sector. It has garnered industry recognition, evidenced by winning the Made in Britain trophy at the North East Business Awards last year. This accolade reflects Zentia’s dedication to manufacturing excellence and innovation.
Zentia’s £2 million investment in its North East sites underlines its commitment to UK manufacturing and innovation. By enhancing its facilities, Zentia is ensuring sustainable growth and reinforcing its position as a key player in the industry.
