Bathroom and kitchen surface manufacturer Rearo is investing around £1 million in its manufacturing plant at Govan in Glasgow as it gears up to expand the commercial contracts side of its business.
The company, which already supplies a range of UK businesses including fast-food restaurants, supermarkets, and high street chains, has secured loan funding from Virgin Money to enable the growth drive.
Rearo’s business is currently 80% retail, comprising household kitchens and bathrooms, and 20% commercial.
A spokesman said it was seeking to grow the commercial side to around 30% of its business.
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Rearo, which said it was on course for turnover of £10.5 million in the year to June 2024, is owned by Graham Mercer. He is the son of James Mercer, who launched the business in 1991.
The company recently recruited David Flower from rival Venesta to head up its commercial operation. Mr Flower has 25 years of experience in the bathroom and kitchen supplies trade.
As commercial sales manager, he will oversee Rearo’s drive to win more commercial contracts in schools, universities, hospitals, leisure centres, retail parks, caravan parks, and fast-food chains.
Rearo has 80 employees, with most of the workforce based at the Govan headquarters. It also has storage and distribution depots in Rosyth, at Washington in Tyne and Wear, and in Northampton.
The company’s products include laminate wall panels and commercial washrooms, as well as worktops.
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Rearo is investing heavily in new capital equipment, including a German-manufactured beam saw.
It said it had secured a number of recent commercial wins which would help it achieve its growth target.
Rearo noted it had won the contract to fit washroom panels and vanity units for vehicle manufacturer Alexander Dennis’s electric bus factory at Larbert. It has also supplied washroom panels for The Oval cricket ground in London, the University of Cambridge, Stena Line at Fishguard, Maybole Town Hall, and the University of Glasgow over the last 12 months.
Graham Mercer, who is managing director, said: "We're aligning this investment with our commercial plans. It's not just about upgrading equipment, it's about positioning ourselves to manufacture worktops locally, a move that is integral to our larger commercial strategy."
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The company recently relaunched its exclusive Selkie range of bathroom wall panels with 15 unique new designs in the 30-strong collection. It has added to its Tradeline range with four new designs.
Rearo noted the relaunch of the Selkie range followed “months of research and creative innovation, that included sending a consultant to Milan Fashion Week…to explore new looks and trends that have been incorporated”.
According to Rearo’s managing director, bathroom and kitchen designs operate in a three-year cycle and, to remain ahead of fashion trends and to “future engineer” its ranges, the company carries out extensive research, consulting with professionals in the home décor and retail fashion industries, including clothing.
Rearo aims to relaunch its worktop range in April, with a focus on manufacturing a 4.1-metre worktop in-house.
It said: “The beam saw will play a pivotal role in this strategy, allowing the company to cut materials efficiently and contribute to the production line for worktops.”
Graham Mercer said: "The next thing we will buy will probably be a beam saw, which would be under £100,000. We're looking to make this investment in the first half of this year, and it's a significant part of our plan to upgrade our manufacturing capabilities.
"The big thing with the new beam saw is the software. It's not just about being bigger or faster - it's about having more up-to-date and advanced software. This will significantly enhance our cutting capabilities and streamline our production processes.”
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