Quinn Group has completed a deal with the Welsh Development Agency to acquire the 700,000 sq ft former LG Electronics site in Newport, South Wales.
Quinn, best known in the UK for owning The Belfry and for having entered the car insurance market two years ago, is to invest £135m in creating the world’s largest manufacturing plant for household radiators.
It has also lodged a planning application with Newport Council to extend the site by 300,000 sq ft.
The buildings have been mothballed since early last year, having last been used by LG Philips Displays to manufacture computer monitors.
The site was built in 1996 for South Korean company Hynix Semiconductors, which owns electronics goods manufacturer LG Philips.
It received hefty Government grants and land at Newport for the manufacture of semiconductors and electronic components.
A worldwide collapse in the semiconductor market led to the company’s decision never to occupy most of the industrial buildings.
Last spring the slate was wiped clean when Hynix agreed to hand back the land and buildings, valued at £36.65m, to the Welsh Development Agency.
Andrew Davies, Minister for Economic Development and Transport, said, “We have been working closely with the Quinn Group for the past 12 months to secure this project for Wales.
“The scale of the group’s plans for the expansion of the building demonstrates how important this new manufacturing operation will be to the group’s future growth.”
The trigger for Quinn Radiators’ latest expansion was the acquisition last year of Irish-based radiator manufacturer Barlo Group.
It plans to create almost 500 jobs in South Wales.
References: EGi News 16/08/05
