HVM Catapult officially opens South Wales site in Baglan

The High Value Manufacturing (HVM) Catapult has opened a new digital factory hub in Baglan, South Wales, in collaboration with the Welsh government. Designed to supercharge innovation in Welsh manufacturing, the facility, opened by Rebecca Evans, the Welsh government‘s cabinet secretary for economy, energy and planning, it is expected to unlock up to £18 million in additional GVA annually within five years by helping manufacturers improve their productivity, efficiency and sustainability through the adoption of digital solutions.

The site is located at the Bay Technology Centre in Port Talbot and will be home to ‘state of the art’ manufacturing equipment funded by the Welsh government. The facility is part of HVM Catapult’s network of industrial research and innovation centres that link research, business and government to develop technologies that can help Welsh manufacturers achieve their digital and sustainability goals.

Manufacturing is a cornerstone of the Welsh economy, contributing almost a fifth (18.4%) of its output, or £11.3 billion annually, and supporting 147,000 jobs. Despite this, investment in research and development (R&D) in Wales is only 40% of the UK average, and many small and medium-size enterprises remain ‘innovation-inactive’. HVM Catapult’s Baglan hub aims to change this by driving R&D and innovation across South Wales’ industrial base.

Rebecca Evans said: “Wales has a strong industrial heritage and more people are currently employed in manufacturing than any other single sector in Wales. This new digital factory hub has the potential to supercharge the future of high-value manufacturing here by helping more Welsh businesses access the expertise of AMRC Cymru and the Catapult network in addressing current challenges and taking advantage of new opportunities.”

Innovation strategy
She continued: “This strongly aligns with our innovation strategy, Wales Innovates, and our commitment to ensuring Wales remains a leading manufacturing nation. Harnessing the power of decarbonisation, digitalisation and skills development will be crucial if we are to achieve our vision of a more prosperous, equal and ‘greener’ Welsh economy. Our partnership with HVM Catapult strengthens our position significantly.”

HVM Catapult Baglan is the second HVM Catapult site in Wales. It is supported by Warwick Manufacturing Group (WMG) and the Advanced Manufacturing Research Centre (AMRC), widening Welsh access to HVM Catapult’s UK-wide network. It will build on the success of AMRC Cymru in Broughton, part of the University of Sheffield AMRC, which, since opening in 2019 backed by £20 million from the Welsh government, has helped more than 100 Welsh businesses make their products faster, cheaper, safer, cleaner and more sustainable.

Katherine Bennett, HVM Catapult CEO, said: “This is a landmark moment for South Wales’ industrial landscape. Helping manufacturers embrace innovation and harness advanced technologies enables them to grow, thrive and secure high-value jobs for the future. At scale, and with the support of Innovate UK, we can elevate Wales’ role as a leader in ‘net zero’ modern manufacturing with new industry, new skills, regeneration and economic growth.

The new facility will initially focus on the estimated 100 medium-size enterprises that do not currently engage in R&D activities in the area. Over the first five years the initiative is projected to contribute an additional £18 million in GVA annually through targeted support – a figure that could double when aligned with the Celtic Free Port.

Disruptive technologies
HVM Catapult will also work to transform Wales’ heavy industry heritage into a new ‘net zero’ cluster able to capitalise on the floating offshore wind opportunity in the Celtic Sea. The team in Baglan will support the scaling of disruptive technologies and optimising of factories for the wind farms which could create more than 5,000 new jobs and deliver a £1.4 billion boost to the Welsh economy.

Jacqui Murray, HVM Catapult director of South Wales, said: “Manufacturing goes back generations in Wales, and I strongly believe that the Welsh manufacturing sector can be creative and prosperous for our future generations too. Opening our new site in Baglan allows us to create exciting opportunities for innovation, partnership and growth in South Welsh manufacturing, and has the full support from HVM Catapult – together we will co-create an exciting and sustainable manufacturing future for Wales together.”

HVM Catapult Baglan will be managed by WMG in collaboration with AMRC Cymru, which will run the digital factory hub. The hub has been granted £1.5 million of Welsh government innovation funding and will showcase the latest digital technologies including a SMART workbench, advanced robotics, virtual and augmented reality (AR) and AM.

Welsh Secretary Jo Stevens said: “I am very pleased to see this announcement. Wales is increasingly becoming a hub of high-tech manufacturing. The HVM cluster is vital for our economy, with innovative businesses supported by the Catapult creating high-skilled, well-paid jobs that bring prosperity and opportunity to south Wales. The UK Government is backing innovation and cutting-edge business as we fulfil the UK Government’s mission to drive economic growth.”