Denco focuses on core air-conditioning business

Denco’s plans to focus on its core air-conditioning business include moving to new purpose-built factory and office facilities in Hereford and disposing of non-core businesses. The company has sold its lubrication and water-tank divisions, freeing capital for completing some key acquisitions, enhancing product development and moving to the new premises. Denco was the subject of a management buyout in 2000, employs over 500 people worldwide and increased its turnover to over £40 million last year. It has expanded its factories in Turkey and Malaysia and has further plans for expansion in China and the Middle East. Managing director Mark Shutler says that the strategic decisions taken in the second half of 2004 and brought to fruition at the start of this year would allow the company to become a total service provider to the building-services industry and its clients. The acquisition from former parent company AMEC in 2003 of what is now Denco Technical Services has enabled the company to expand its service and maintenance offering right across heating and air conditioning. Operations director Derek Ling says, ‘We have established Denco as a truly global manufacturer with premises around the world, but must have our technical centre of excellence here in the UK to support that position.’
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