Automation specialist boosts exports after UKSE investment

A Birmingham-based specialist in factory automation and robotics has strengthened its export performance after receiving £200,000 in funding from business finance provider UKSE. Mechatronic Production Systems Limited, based at Kings Norton Business Centre, has secured overseas contracts despite challenging market conditions in the UK, where many customers have paused long-term investment due to international tariffs.

The company supplies factory production and robotic process automation to leading automotive, industrial, medical device and aerospace manufacturers worldwide. Its portfolio includes Robopod, a modular and portable ‘plug and play’ robotic solution that can operate as a standalone unit or link with others to form a flexible production line.

Tony Parker-Watkins, managing director, said the business needed to adapt its plans in response to economic uncertainty. He explained: “There is no doubt a lot of manufacturers have put the brakes on spending on capital investment, which impacts us, as they absorbed the costs of increased National Insurance payments and other changes such as the export tariffs, but things picked up for us from the spring onwards.

“We re-applied our focus outside of the UK and have picked up significant projects for customers in the European Union (EU) and Asia. We are committed to serving customers in the UK but we have been able to make the most of these opportunities further afield. We have recruited two new people and the business is on target and structured to achieve growth. Our focus is now on building our overseas new business pipeline as there is plenty to fight for. The funding from UKSE has enabled us to capitalise on these opportunities and we are looking to recruit, subject to the work in the pipeline being secured.”

Innovation in action
Mechatronic approached UKSE in 2024 for backing to fund growth. UKSE, which provides strategic loan and equity packages of up to £1 million to generate jobs and support SMEs across the West Midlands, has maintained close ties with the company. Mr Parker-Watkins added: “The feedback the directors gave was very positive as they were pleased to see innovation in action with our work in industrial automation. We have a monthly call with the local UKSE team, who have been supportive since we borrowed the funds.”

UKSE Midlands area manager Steve Grice said: “We are pleased to have seen Mechatronic make strides forward despite the challenging economic environment. Even though the going has not been favourable, Tony and his team are taking a global view to unlock new opportunities which benefit not just their business but the wider West Midlands economy. By working with specialist, highly skilled businesses like Mechatronic, UKSE can deliver on its mission of enabling businesses and the people behind them to create jobs, grow and prosper.”

UKSE was introduced to Mechatronic by Andy Moss of Ricosta Capital, who said: “It has been great to see Mechatronic use the support to deliver further success in the West Midlands. Their progress since they received their funding is an example of a well-run business making the most of the opportunities ahead of them.”

UKSE, a wholly owned subsidiary of Tata Steel UK Ltd, has invested more than £115 million since 1975, helping 8,000 businesses and stimulating the creation of 83,000 new jobs. The support for Mechatronic came alongside a further £350,000 investment from the Midlands Engine Investment Fund II through Frontier Development Capital.