The High Value Manufacturing (HVM) Catapult has officially opened a new cutting-edge digital factory hub in Baglan, South Wales, in collaboration with the Welsh Government.

Building on the success of the University of Sheffield AMRC Cymru, in North Wales, the new facility is designed to supercharge innovation in Welsh manufacturing. It was opened by Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning at the Welsh Government, and is expected to unlock up to £18 million in additional GVA annually within five years by helping manufacturers improve their productivity, efficiency and sustainability through the adoption of digital solutions. 

Evans welcomed the new hub’s alignment with the government’s innovation strategy, Wales Innovates, and said more people are currently employed in manufacturing than any other single sector in Wales.

“This new digital factory hub has the potential to supercharge the future of high value manufacturing here by helping more Welsh businesses access the expertise of AMRC Cymru and the HVM Catapult network in addressing current challenges and taking advantage of new opportunities,” she said

“Harnessing the power of decarbonisation, digitalisation and skills development will be crucial if we are to achieve our vision of a more prosperous, equal and greener Welsh economy.”

The digital factory hub will be run by AMRC Cymru, part of the University of Sheffield Advanced Manufacturing Research Centre (AMRC), and the team will include digital, automation and design engineers, supported by Warwick Manufacturing Group (WMG, which is also a member of the HVM Catapult). Located at the Bay Technology Centre in Port Talbot, the hub will be home to state-of-the art manufacturing equipment funded by the Welsh Government, including a SMART workbench, advanced robotics, virtual and augmented reality and additive manufacturing.

Katherine Bennett CBE, HVM Catapult CEO, said: “This is a landmark moment for South Wales’ industrial landscape. Helping manufacturers embrace innovation and harness advanced technologies enables them to grow, thrive and secure high-value jobs for the future. At scale, and with the support of Innovate UK, we can elevate Wales’ role as a leader in net-zero modern manufacturing with new industry, new skills, regeneration and economic growth.”

The new facility will initially focus on the estimated 100 medium-sized enterprises that do not currently engage in research and development  activities in the area. HVM Catapult will also work to transform Wales’ heavy industry heritage into a new net zero cluster able to capitalise on the floating offshore wind opportunity in the Celtic Sea. The team in Baglan will support the scaling-up of disruptive technologies and optimising of factories for the wind farms which could create more than 5,000 new jobs and deliver a £1.4 billion boost to the Welsh economy.

Jacqui Murray, HVM Catapult Director of South Wales,  said: “Opening our new site in Baglan allows us to create exciting opportunities for innovation, partnership and growth in South Welsh manufacturing, and has the full support from the HVM Catapult – together we will co-create an exciting and sustainable manufacturing future for Wales together.” 

Jason Murphy, strategy and commercial director at AMRC Cymru, sees the potential of HVM Catapult Baglan to drive much-needed change. He said finding a balance of support for both SMEs and large businesses was hugely important. 

“Three-quarters of manufacturing turnover in Wales is generated by large organisations, highlighting the importance of keeping these national frontier firms internationally competitive” said Jason. “Equally vital is the need to foster the growth of SMEs capable of adopting innovations driven by research and technology.

“In this broader ecosystem, AMRC Cymru plays a pivotal role in advancing manufacturing innovation and, in turn, driving economic development across Wales. That’s why we’re developing a ten-year strategic plan to strengthen expertise in key technology areas, expand translational manufacturing research across Wales, and deliver tangible economic benefits.

“The new facility in Baglan marks an important milestone in realising this vision.”

The facility is part of the HVM Catapult’s network of industrial research and innovation centres that link research, business and government to develop technologies that can help Welsh manufacturers achieve their digital and sustainability goals. 

Manufacturing is a cornerstone of the Welsh economy, contributing almost a fifth (18.4 per cent) of its output, or £11.3 billion annually, and supporting 147,000 jobs. Despite this, investment in research and development in Wales is only 40 per cent of the UK average, and many small and medium-sized enterprises remain innovation-inactive. HVM Catapult’s Baglan hub aims to change this by driving research, development and innovation across South Wales' industrial base.

Andy Silcox, research director at AMRC Cymru, has seen the struggle small and medium-sized enterprises (SMEs) can go through in their adoption of new technologies and processes. 

He said: “It can be a daunting task for SMEs to wade through the array of technologies on the market to find the right solutions for them, so AMRC Cymru’s approach is always to demystify and demonstrate, in order to implement low-cost, high-impact solutions to start their digital transformation journey. We want to show SMEs their potential, and the digital factory hub will help us do that.

“Welsh manufacturers have not always been accessing the world-leading technology and engineering talent; the establishment of AMRC Cymru was our way of addressing this. It has given Wales a doorway into the HVM Catapult and wider funding opportunities, and the engagement we have seen in North Wales has been phenomenal.

“HVM Catapult Baglan is our commitment to build on this, to provide an engineering base from where we can run initiatives, and better serve the manufacturing community in South Wales.”