Manufacturing in the UK has been enjoying a renaissance in recent times. Despite easing slightly in March, it looks to have enjoyed a growth of two per cent in the first quarter of the year, according to the CIPS/Markit Purchasing Managers’ Index, one of the best performances seen for 17 years.

And it is companies such as LTi Metaltech which are helping drive that performance.

LTi recently announced a £1.5m expansion of its business, taking on another unit at Milton Park, as well as 30 new jobs to cope with increased demand. This is the result of a new order from its key customer Siemens Magnet Technology (SMT) to produce cryogenic pressure vessels for the next generation of magnetic resonance imaging (MRI) scanners.

While its parent company is German, it has been based at Milton Park since 2005, and came on the back of a long-standing relationship with SMT.

SMT, based at Eynsham, wanted to concentrate on cryogenics (developing materials capable of operating at extremely low temperatures), leaving an opportunity for LTi to take on the precision fabrication and welding of high performance vessels and structures used to make scanners for hospitals and laboratories around the world.

Not only has LTi taken on the business, along with SMT it has managed to expand it with growing demand now meaning 4,000 vessels are produced a year. And the ability to produce in volume makes the company more attractive to potential global customers, as costs are driven down.

Significantly, operations director Phil Lacey is a good example of someone who has made the transition from the traditionally ill-fated side of British manufacturing to this innovative growth business.

Mr Lacey previously worked for MG Rover in Longbridge and joined LTi Metaltech in 2006, shortly after it set up in Milton Park.

He said: “While it is quite different from building cars, what excites me is manufacturing. There are a lot of skilled people here and the buiness very much relies on them.”

A lot of investment is being made in the latest technology which, rather than substituting human input, is allowing it to concentrate on activities which deliver the best value for the company.

He added: “The technology is just a tool for the people in the business. It is very difficult to find a workforce here, as welding is not a sexy proposition for a school leaver, but they are very highly skilled.”

As a result, some workers travel from as far as London and the company is now looking to recruit apprentices to ensure it is able to employ skilled labour in the future.

Mr Lacey said: “The pool of skilled labour in Oxfordshire is diminishing and skills availability is a threat to the business. That is why we are taking people on now, while also bringing a dedicated trainer into the business.

“For every recruit we put into an office, we should have ten more on the shop floor.”

The high grade stainless steel used by LTi is only available in Sweden and China, and at the moment the company is only using the European supplier.

Mr Lacey describes the Chinese supply chain as not being as ‘mature’ as in Europe.

“We deal with a highly regulated environment and you have to be sure that what you are buying is exactly right in terms of its physical properties, but I have little doubt that China will get to the point where we need them to be at.”

But significantly the company also wants to use the expansion as a platform to bring in new clients over the next 12 months, for example in the nuclear and renewable industries.

Mr Lacey said: “We are talking to other companies and looking at different fields. Our location is ideal to talk to other cryogenic firms, and Oxfordshire is of course an academic centre of excellence, and there is a lot of innovation in the area.

“We are in a strong position as we have made a significant investment and extension to the business but we are not reliant on the bank.”

But what LTi is looking for is long-term relationships and it is prepared to wait to find the right partners.

Mr Lacey said: “Some of the areas we are interested in are two to three years too early in terms of a manufacturing solution.”

Meanwhile, there is plenty of mileage in LTi’s relationship with SMT.

Mr Lacey said: “Siemens is a market leader in terms of MRI, and has grown its share of a market which is clearly not saturated.”

And, in a statement that perhaps owes much to his background in the British car industry but now sounds convincing, he added: “I feel proud we are able to fly the flag for manufacturing in Britain.”