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A manufacturer which supplies the modular building sector has moved its operations from Romania to East Yorkshire.

SIPS Panel Technology Systems (SPT), which manufactures and supplies insulated panels for buildings, has moved into a new site in Driffield, linking up with sister company Kepi International Solutions.

Group CEO Craig Carmichael admitted the move from Eastern Europe to the UK was a bold decision amid ahead of Brexit, but described it as “a major step” for the two businesses.

SPT and Kepi International have a joint turnover of £12m.

Mr Carmichael said: “It's a brave decision based on what’s happening at the moment in the UK and the fact that most of our SIPS business comes from Europe, but we are confident that the move back here will work.

“We will be recruiting locally for our factory and, as lot of our customers are based in the Benelux countries, we are well placed with the various ferry services in the Humber for access to these countries.”

SPT and Kepi International are now based at a site in Skerne Road, Driffield.

The new facility, which is a combination of administrative offices for both companies and a manufacturing unit and warehouse for SPT, has 10,000 square metres under cover.

It is a major step for the businesses, which are now well established in their respective markets.

Kepi International provides a range of construction and infrastructure services across the UK, and works with both contractors and developers.

(Image: PA)

“Kepi has been trading for almost nine years now, we have a lot of experience, providing construction and infrastructure services in the UK and around the world,” Mr Carmichael said.

“We offer turnkey solutions to developers and contractors globally - these can be small local projects or major schemes and we can act as the main contractor or as a sub-contractor.

“We do a lot of work with the military, especially in the Middle East and Africa and have a track record of delivering at the forefront of combat areas, post-conflict countries and regions of political unrest.”

Kepi’s services include survey and design, infrastructure development, civil engineering and facilities management.

Relocating the SPT factory from Romania to East Yorkshire has been completed, and the new production unit commenced manufacturing early in the New Year.

How to contact Phil Winter and Business Live Business Live's Hull & East Yorkshire journalist is Phil Winter, also the business editor at the Hull Daily Mail and Hull Live. You can follow Phil on Twitter @PhilWinterBiz, or on Linkedin by clicking here. Alternatively, email him on philip.winter@reachplc.com, or call 01482 315360. Keep up to date with the latest business news in the Hull & Humber region here. Follow @HumberBizEd and @businesslive on Twitter

Moving back to the UK will allow SPT to expand production, increase its UK sales and continue supplying new and existing customers in mainland Europe.

Mr Carmichael said: “We decided in 2016 to set up manufacturing in Romania and this has operated well, but we recently took the decision to invest in the UK and so have set up a brand new plant and relocated the whole business to East Yorkshire.

“Both Kepi and SPT are well known in their respective markets and we now want to ensure they become further established in East Yorkshire…

“We believe there is a strong future for UK-based businesses working around the globe and, as an international player, we are doing our bit to re-establish our countries reputation in world markets.”