15 World-class companies from across the region


This article is the third in a series looking at leading-edge companies identified by BDO


Leading Edge


LTi Metaltech: welding together a winning formula


When LTi Metaltech began life in 2005, as a specialist fabrication and welding company spun-out from Siemens, it probably didn’t consider itself ‘leading edge’. But today, with annual sales exceeding £24 million and its products used worldwide, it certainly is.


LTi Metaltech produces precision-welded high- performance vessels and structures capable of withstanding extreme pressure, vacuum and temperature differentials. For example, today it is the lead manufacturer of cryogenic pressure vessels used in Siemens MRI Scanners. It also supplies high-integrity containers for nuclear waste disposal.


So how did LTi Metaltech get to be an industry leader with world-recognised expertise?


Firstly, its founders recognised the potential of LTi within its niche manufacturing sector and, in appointing Phil Lacey as operations director in 2006, chose the right man to develop that potential.


“I had to do a lot of work on the balance sheet, and focus our resources to a more defined set of targets,” says Lacey, who now reports to a single entrepreneurial owner of the UK-limited company.


Having got the financials right, Lacey focused on investing in the business.


Basically, LTi inherited a traditional fabrication workshop and the core of a skilled team from Siemens. Over the years this has been steadily enhanced and enlarged – both premises and workforce.


Today you will see a bright, airy and clean workshop at LTi’s Milton Park home near Didcot. Lacey’s background is the automotive world (at MG Rover) so think factory worklines or F1 technical preparation and you capture the LTi manufacturing model.


“We haven’t finished yet but for me LTi needs to look and feel very different from the norm. We have a different high-standard proposition to offer.”


Few of Lacey’s management team worked within fabrication before joining LTi. The team includes talent from automotive, motorsport, glass making, telecoms, and medical sectors.


“I was keen not to get people who knew about fabrication. LTi had to have people who would ask the naïve questions and approach things differently.


“We have taken best practice and techniques from industries outside fabrication and applied them where you wouldn’t traditionally see them happening.”


THE BUSINESS MAGAZINE – THAMES VALLEY – NOVEMBER 2011


that. They know where they stand with me and what the company requires from them.


“We challenge our people, but that’s part of being world-class. You have to feel the adrenalin, be a little bit uncomfortable at times. I believe people need a motivation to deliver targets and that comes from the way they are led. Leadership is about modifying certain behaviours to match the brand of the organisation.”


“The benefit is that we all enjoy a good employment.” Staff turnover was 11% when Lacey joined. “Now we rarely lose anyone. In fact, we’re recruiting.


Phil Lacey


Factory-style incentivised teams, production line processing, high-power water jet cutting equipment, plasma-welding systems and weld- checking by X-ray are now standard LTi features.


LTi consistently checks out innovative worldwide welding and fabrication technology. “I expect a technology update from my engineering manager at least every month. We always have our eye on the future.” This November the company will introduce a robotic welding system.


“Our focus is to maximise utilisation of our high- value investments but also to continually add value to our customer offering. Technological solutions are fine, but those solutions are only as good as the people you put beside that technology.”


LTi employs one of the largest groups of professionally coded welders in the south of England, all working to the highest industry and regulatory standards.


Skill levels are paramount but Lacey’s management team also uses a psychologist to profile leadership behaviour and team performance.


An open, honest and clear teamworking culture has also been developed. “I’m a great believer in letting people know what you think. People appreciate


“We had to put some firm foundations down before we could demonstrate our leading edge through our technology and people.


“Three years ago we announced ourselves. We were successfully making hi-spec fabrications, but no-one knew we were here. Since then, we have been getting a huge interest, not just from the UK, but also Europe, Korea and the US.”


In March, LTi completed a £1.5m investment in specialist equipment, increased its factory floor space, and set about taking on more staff to meet increased demand. Strategically, LTi also announced plans to grow its medical sector manufacturing base into the energy, renewables and nuclear sectors.


Does Lacey consider LTi Metaltech to be ‘leading edge’?


“Very few companies worldwide can produce the products we do. We know our competition, and we have taken business from them, so some people think we are better.


“People who want value in terms of quality performance will come to us. Although we are not the cheapest, our pricing is relatively competitive . . . and we are the best.”


*LTiMetaltech is No 160 in our Thames Valley 250 listing of top private companies


The BDO business view by partner Chris Pooles From the moment you arrive outside LTi Metaltech’s Milton Park headquarters you can tell this


is no traditional manufacturing facility. Walking round their offices you can sense this is a well-run business built on firm principles.


LTi has come a long way since its original spin out from Siemens in 2005, with significant considered investment being made in its people, its plant and its processes. Just as impressive is the fact that this investment has all been made out of working capital leaving the business with a very strong balance sheet.


This all means that LTi has put itself in prime position to take full advantage in a highly competitive marketplace and enable it to continue to demonstrate its ‘leading edge’ through its combination of state-of-the-art technology and a highly-skilled workforce.


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