|
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. |
