25 Years of Dramatic Change

The next 25 years of Avon's history were to record dramatic changes in its fortunes.

J W & T Connolly was expanding rapidly and by 1961 it had moved into a new purpose built factory nearby. In a commendable display of organisation and commitment, machinery was dismantled at the old factory on Wednesday and was installed and running at the new facility by Sunday.

Also that year, the Duke of Edinburgh arrived by helicopter for a tour of the Melksham factory and a practical demonstration of inflatable boats on the River Avon, this was watched by hundreds of Melksham townspeople.

This era of seemingly unlimited promise continued as some 5,000 employees contributed their efforts to a product range which was now being exported to 125 overseas markets. Expansion was the keynote as market leadership was established for Avon components playing a vital part in many industries.

The Duke of Edinburgh talks to members of the Mixing facility on his visit to the Melksham factory

The Melksham plant alone was producing 1½ million tyres annually and wide acclaim was won by the development of a cling rubber tread compound for car and motorcycle tyres, which provided greatly improved wet road grip.

By acquiring the Normeir Tyre Company in 1963, Avon became involved with tyre distribution for the first time. This chain, strengthened by future acquisitions, was to form the basis of the Motorway Tyres and Accessories Company.

It was also in 1963 that the word "India" was dropped from the title which was shortened to Avon Rubber Co Ltd.

Further growth was achieved in 1964 with the acquisition of two companies. These were David Moseley and Sons Ltd of Manchester, manufacturers of industrial rubber and plastics products and their subsidiary, Capon Heaton, makers of rubber and plastics components and a highly specialised range of medical products. A new factory for the manufacture of inflatable craft was also set up at Dafen, near Llanelli, where production of these items transferred from the Abbey Mills factory at Bradford on Avon.

The Great Fire of 1966

On 15 August 1966, the Great Fire at Melksham destroyed the Finished Goods store, in which it raged for many hours and threatened to engulf the whole factory. It was an event which evoked a remarkable spirit of teamwork. Factory and office workers joined forces with the works and county fire brigades. Chains of employees passed tyres from hand to hand ahead of streams of molten rubber. The company lost 25 per cent of all its new stocks, plus all moulded rubber products awaiting despatch. The biggest fire in Wiltshire's history cost more than £1 million but as a result of remarkable ingenuity and co-operation less than two production shifts were lost.

Thankfully, the fire was well away from the new computer room which had just been built to house Avon's new ICT1903 computer. It was commissioned to produce invoices and statements and monitor production to automatically replenish stocks at all the depots. The equipment was so sensitive that the floor could be adjusted to ensure that it remained perfectly level. The computer room was also equipped with its own power supply and air conditioning to create a humidity and temperature controlled, dust free environment.

25 Years of Dramatic Change - Part 2

In the same year, Oswald Swanborough retired as Managing Director, but remained on the Board. He was succeeded by his son, John, who had joined Avon in 1952.

Also in 1966, a further move in the distributive side was made when Tyrebatt, a West of England tyre distributive chain, was purchased and a year later the tyre and accessory distributive interests of Kerrys were bought. Avon also began an involvement in the manufacture of rubber for hovercraft skirting.

Technically Avon faced a development which was to have a major and far reaching effect on its future - and indeed that of the local tyre industry. It was in the early 1960s that advances in tyre technology led to the introduction of radial tyres. These gave a far greater mileage than their crossply counterparts which at first they complemented and eventually rendered obsolete. Avon was among the pioneers of radial tyre construction and it was generally concluded that with the major differences in production techniques radials would have to be produced in separate manufacturing units. As Government restrictions ruled out expansion of the Melksham factory, Avon's new radial plant was sited in one of the designated industrial development areas at Washington, County Durham. Construction began in 1968, but economic factors and an analysis of the industry's future prospects, resulted in a change of plan and the decision to concentrate all tyre production at Melksham. With this in mind, the new Washington factory was sold to Dunlop in 1969.

In 1968, the company newsletter reported that 320 cups a week were going missing from the Melksham canteen, bringing a strong warning from the Canteen Manager that if it carried on, meal prices would go up. Work was also beginning on the building of the new purpose-built laboratory block.

Later that year, Avon acquired a factory at Redditch for the manufacture of refrigerator door seals, to ease the pressure on space at Capon Heaton in Birmingham.

John Swanborough unveils the new logo at the Actavation conference

1968 also signaled a major event in the Avon history. A marketing conference was held, christened "Actavation", and attended by over 350 of the company's senior managers and sales executives from the UK, Europe and Africa. They were addressed by John Swanborough, Avon's Managing Director at the time. He announced a "New Avon" in which an open culture would be adopted, allowing employees to "apply their intelligence, be creative, and to take responsibilities". The new Avon logo was also unveiled, replacing the traditional Stonehenge image which, although a symbol of strength and endurance, also carried connotations of immobility. An objective was also announced that the company was to double its turnover in 5 years to over £60 million. Five years later the turnover for the company was £64 million.

At Bridgend, footwear presses were removed to make way for new tyre remoulding presses

Tyre remoulding in Bradford on Avon was beginning to outgrow production capacity, so in 1968 manufacturing was transferred to the footwear factory in Bridgend which was now struggling. A 70,000 square foot extension was built and a new market was being established for "Camel Back" - a name given to extruded rubber tread which was wrapped around tyre casings before being remoulded. From zero sales in 1969, by 1974 Avon supplied 40% of demand in the UK and 70% in Ireland.

25 Years of Dramatic Change - Part 3

Avon Reifen's exhibition stand at the 1971 Geneva Motor Show featured a sports car which was towed from England by the Publicity Manager

In 1969, Avon Reifen began operations in Dusseldorf, Germany. This marketing arm was set up to promote sales of Avon tyres in the Federal Republic of Germany. Avon Reifen was very successful as news of the quality of Avon tyres spread, helping to improve the safety of travel on the German Autobahn roads where there is no speed limit.

The tyre company also continued to expand in Britain where Howcroft Tyre & Battery Company Limited was purchased in 1970. This tyre distributor was integrated into the blossoming Motorway Tyres distribution chain, and Avon won an order from Volkswagen to supply tyres to the famous Volkswagen Beetle.

In the early 1970s the decision was made to expand Avon Medicals into the highly demanding business of designing and producing disposable blood transfusion sets and also dialysis equipment for patients suffering from kidney disease. In February 1970, an order came in from the Crown Agents to the Colonies for 13,000 blood administration sets which were needed urgently. They were despatched to the Nigerian Red Cross in Lagos on the same day.

In 1972 a 33 per cent shareholding was acquired in another specialist company, Lippiatt Hobbs and Co Ltd. Based in Westbury, Wiltshire, the business had been formed to develop and market new products for the repair and maintenance of gas distribution networks. The company was re-named Avon Lippiatt Hobbs.

Avon Medicals, Capon Heaton, Birmingham

Avon Industrial Polymers was actively reinforcing its reputation for innovation and technical excellence. Following the granting of a licence by the National Economic Development Council to develop and manufacture hovercraft skirt components, work had been undertaken with leading hovercraft manufacturers such as Vosper-Thorneycroft and the British Hovercraft Corporation. In recognition of Avon's contribution to this form of transport, the Department of Trade and Industry awarded the company a contract in January 1973 to carry out development work on behalf of the hovercraft industry. This had the stated objective of improving the life and performance of skirt materials by at least ten percent, a target which was greatly exceeded.

With little evidence of the desperate economic problems which ahead, Avon continued to grow and diversify. The tyre division was expanding the scope if its distribution network with the opening of new depots at Birmingham, Glasgow, Reading, Leeds and Newcastle making a total of over 140 branches in the UK and Ireland.

In the early months of 1973, a new division was formed at Bridgend, grouping together products such as remould tyres and materials, wheel and undergear equipment, and the marketing of footwear and industrial tyres. Avon Medicals began to develop the export side of the business by opening a marketing company in Dietzenbach, West Germany.

At Melksham, Avon Ames Ltd was formed as the result of a joint venture between Avon Industrial Polymers and the Ames Rubber Corporation of the United States. Avon Ames designed, developed and manufactured reprographic roller coverings for the high speed copying machines which were quickly becoming an essential feature of modern business life.

25 Years of Dramatic Change - Part 4

Government recognition of Avon's continuing quest for excellence in product design and manufacture was provided in October 1973 when the Minister for Industrial Development, Christopher Chataway, opened the new Technical Block at Melksham and commissioned a new tyre incinerator and steam-raising unit which was at the time the most modern of its kind in the world.

At the end of this stimulating period in the company's history, the annual turnover of the Group had risen from £12.9 million in 1961 (profit £482,000) to £53 million in 1973 (profit £2.2 million).

Avon Illinois Inc, located in Chicago, was established in May 1974 as a marketing subsidiary of Avon Industrial Polymers - selling golf grips, aerosol gaskets, milking machine parts and automotive hoses and Avon's first European manufacturing base was opened at Tessenderlo, Belgium. The 20,000 sq ft factory, opened with an order book brim full of requests for reinforced hoses, mainly from Volkswagen and Saab.

Christopher Chataway opens the new Technical Block at Melksham

Suddenly, one major event transformed the fortunes of the industrial and developing countries. The decision by the oil-producing countries to impose massive price increases caused worldwide economic and social crises. Energy costs soared, together with those of oil related chemicals and rubbers, transport and other services. A period of exceptional inflation and economic instability was the inevitable consequence. Every sector of industry suffered and there were particular problems for the tyre manufacturers. With fewer new vehicles being sold and radials giving a far greater mileage, sales of new tyres plummeted. A serious worldwide over-capacity of tyre production resulted and, as competition for customers increased, Avon's year-end accounts for 1975 reported a loss of over half a million pounds.

As each manufacturer sought a route to salvation, Avon's solution was to intensify the search for new products and markets. The medicals business was providing fresh opportunities for expansion at home and overseas, so in February 1975 a new purpose-built factory for Avon Medicals was opened in Redditch, UK and a joint venture company, Dravon Inc, was established in Oregon, USA, with Drake Willock, pioneers in the manufacture of kidney dialysis machines, providing Avon with a foothold in the large and potentially lucrative North American market.

Thankfully, the 1976 year ended with a return to profit and the 1977 trading year began with full order books at nearly every Avon factory around the world.
In September 1977, British Gas awarded a licence to Avon Lippiatt Hobbs to promote the worldwide sales of products and systems relating to the maintenance and sealing of gas distribution pipelines.

The expansion of AIP's automotive hose business in Western Europe was highlighted by an order for three million radiator and heater hoses from Volkswagen of West Germany.

The military sector provided many fresh opportunities for Avon Industrial Polymers and its Bradford on Avon factory was the first to be approved to the highest level of Ministry of Defence quality approval - an award eventually won by all AIP divisions.

Despite the effects of the recession, these activities enabled Avon to achieve a record profit of £5.4 million in the financial year ending September 1977.

In November 1978, Avon Industrial Polymers and the Ames Rubber Corporation formed a second joint venture company, based in New Jersey, USA. Ames Avon Industries began by manufacturing a range of injection moulded gaiters for front wheel drive American motor vehicles.

Also in November 1978, Avon acquired the remaining 67 per cent shareholding in Avon Lippiatt Hobbs, a further example of the Group's policy of increasing.

25 Years of Dramatic Change - Part 5

Avon's purpose-built Hose factory in Trowbridge

As demand both in the United Kingdom and overseas grew for automotive hoses, production was transferred in May 1978 from Bradford on Avon to a new purpose-built factory at Trowbridge, the most modern facility of its kind in Western Europe.

Avon's mastery of hovercraft skirt technology was underlined in April 1979 with the opening of a new factory at Chippenham. This was soon doubled in size as demand rose, not only for hovercraft skirts but for dry diving suits, containers and other flexible fabrications.

Later that year, as Britain and the other leading industrial nations were recovering from the effects of recession, there was a further major increase in the price of oil. Six years of recovery, achieved by the more efficient use of energy and greater productivity, was brought to a halt. In Britain, the progressive decline of traditional industries which had been evident for some years, was accelerated with traumatic social and financial consequences. Extreme competition for the reduced volume of business caused a sharp decline in profits in 1980 and, together with the cost of reorganisation, led to losses being made in the following two years.

For Avon, an urgent programme of product rationalisation and costly reorganisation formed the basis of the Group's survival. Avon became a public limited company on 23rd December 1981.

The first grim effects of recession had already begun with the closures of the Moseley factory in Manchester and of the Capon Heaton factory in Birmingham.

The Group sold Avon Medicals because its product development programme could not be supported from Avon's technical resources.

Avon Industrial Polymers was reorganised to provide a single management structure and a reduction in the size of its workforce.

After only two years of operation, the second Avon Inflatables manufacturing unit at Henley was closed and all production concentrated at the Dafen site.

The Bridgend factory was closed with a loss of 260 jobs, and the manufacture of remould materials transferred to Melksham. The axle business was sold and a management buyout agreed for Avonride suspension equipment. Footwear production and marketing had already ceased.

But it was at the very heart of the Group, at the Melksham headquarters that the harshest and most widespread measures were taken to ensure the Group's survival.

In January 1982, 250 employees in the Tyre company were made redundant, and in October a drastic reorganisation plan for Tyres was announced. This resulted in the loss of a further 600 jobs, with total tyre output being reduced by a third and involving major reductions in both passenger and truck tyres.

In 1983 the effectiveness of these measures became evident with a return to profit.

The search for new business opportunities, the broadening of the Group's market base and the concentration of effort to increase productivity were supported by an increased rate of investment in design and manufacturing resources.

The way ahead was signposted by a number of significant achievements in various areas of the Group's activities.

The award by the Ministry of Defence of the full development contract for a new general service respirator of the British Armed Forces (the Avon S10), provided a major new opportunity for Avon Industrial Polymers.

The Avon S10 respirator

25 Years of Dramatic Change - Part 6

A range of racing tyres developed by Avon Tyres quickly won successes in numerous championships and attracted orders from many parts of the world.

Avon Lippiatt Hobbs established a manufacturing and marketing company in the USA and purchased Norbreen Resins of Rochdale, Lancs, a highly specialised formulator. Worldwide licences for patented techniques of trenchless pipe-laying were negotiated with British Gas and the Water Research Centre.

The range of leisure craft produced by Avon Inflatables was augmented by the introduction of boats for commercial and military purposes - necessitating a considerable expansion of production facilities.

At Trowbridge, additional factory space was required for the manufacture of more complex and technically advanced ranges of automotive hoses.

A length of hovercraft skirting being finished at Bell-Avon, USA

The rapid development of hovercraft in the United States brought Avon to a joint venture with one of America's leading high technology groups. Avon Industrial Polymers and Bell Aerospace Textron formed Bell Avon Inc, located at Picayune, Mississippi. This company produces hovercraft skirts and other flexible fabrications for military and commercial applications.

To reinforce the group's finances an approach was made to shareholders in September 1984 to support a one-for-one Rights issue of 6.6 million new ordinary shares and this was fully subscribed.