Six years after a programme of restructuring and refocus, Ashchurch based Tungum Ltd, the manufacturer of a corrosion resistant alloy tubing, has seen an increase in turnover of 125% and a boost in profits of a staggering 471%. The turnaround is even more impressive considering the business was facing potential closure in 2010.
Established in 1933 in Cheltenham, the firm originally focussed on controlling the manufacture and sales of Tungum tubing. Over time, the company diversified into a range of demanding markets, including manufacturing pipework systems for military, transportation services and medical applications, in effect operating two companies running in tandem. Fast forward more than 70 years, and the company moved to Tewkesbury, and five years further on, the decision was made to refocus on the sales of Tungum alloy tubing.
The two years that followed the change in focus saw a slight dip in sales, but once the new management team settled in and the future focus was confirmed, the profits began to grow. Supported by a robust five-year strategic business plan, the development of the board capabilities and a distributor network allowed Tungum to gain accreditations that allows the tubing to be specified for a wide range of highly demanding uses.
The increase in sales meant an expansion to the sales team, with key hirings in Texas, USA, and Aberdeen, Scotland to ease some of the pressure on the distribution network. Export sales have seen dramatic growth in recent years, and UK Trade and Investment (UKTI) identified Tungum as a major export opportunity. More than 80% of sales in 2015 were to export markets, with the same year seeing the firms largest single order or more than 50 kilometres of tube to an oil and gas facility in the Caspian Sea.
John Zbihlyj, Operations Director at Tungum Ltd, said: its been quite a journey since the restructure, and we have a fantastic team in place to move us forwards. Everyone is delighted with how things have progressed, and we all pull together to achieve our goals. The challenges could have proved too much for some, but everyone here has stuck at it and are now reaping the benefits. Tungums success story really is thanks to their efforts, and the management team is incredibly proud of what we have all achieved.
The team at Tungum continually explore and develop new sectors and opportunities, gaining sector specific accreditations and approvals and the Tungum board are very much looking forward to the coming years, exploiting the labours of six years of hard work.
For more information about corrosion resistant Tungum tubing, visit www.tungum.com