News Article

A forester who put his business expansion plans on hold due to the harsh economic climate has reignited his desire to grow his company after pressing ahead with funding from One North East.

Due to the recession Richard Makepeace of Hexham, Northumberland, put part of his project on hold 18 months ago but in the wake of an extended heating season and the return to growth in the biomass market, has decided the time is right to complete his investment and business expansion plans.

Richard sought the help of the Rural Development Programme for England (RDPE), managed by One North East and through the Northwoods RDPE BioeNErgy panel. He received funding to buy machinery to allow him to go ahead with his original plans and also create an additional full time job.

The funding will improve the efficiency of his business while enhancing the local wood fuel supply chain and help better control local under managed forests and woodlands.

Richard, 42, said: “Due to the economic climate over the last couple of years I felt uncomfortable pressing ahead with my plans to expand. Thankfully there has been a return to growth in the biomass market so this investment through RDPE will allow me to take advantage of the upturn by working more efficiently and also allow me to employ a full time member of staff. 

“Both of these factors will allow the business to be more productive allowing me to enhance the local wood fuel supply chain and bring local undermanaged forests and woodlands to an improved level of management.

“I have been in the agriculture and forestry industry for around 25 years with my business evolving over the years to meet demand.  It now focuses on contracts to undermanaged small woodlands, wood from which often supplies biomass markets and provides firewood. 

“The nature of my business means that I operate in small woodlands that are often not considered viable operations by larger forestry contractors, therefore making my business a niche market place.

“There are advantages of bringing small woodlands into management, many of which are considered to be public goods such as improved woodland habitats with associated positive impacts on biodiversity, aesthetic and access values.”

The use of biomass – solid plant or animal material – to generate heat and electricity is recognised by the Government as a technology which can deliver immediate carbon and cost savings for homes and businesses. The biomass sector is small but growing in North East England, with the potential to be contributing more than £75m a year to the regional economy by 2015.

Adrian Sherwood, RDPE Manager at One North East, said: “With new biomass markets opening, the industry is seeing a huge increase in the demand for timber products so Richard recognised the potential to expand and chose the right time to press ahead with his investment plans.

“It is crucial that we consider the importance of the biomass sector but as farms and forestry businesses in the region are often small or micro enterprises RDPE funding is essential to help companies invest in the training and equipment needed.”

Jill Platten, Project Officer at Rural Development Initiatives at Northwoods, which runs the biomass project, said:

“This is an increasingly important sector, particularly for this region, so it is essential that we continue to work with vital projects like Richard’s to allow him to continue to grow his business to meet demand.”

This project is investing in facilities and systems for harvesting, processing, storage and distribution; work on biomass fuels such as those from forestry, forestry and timber co-products, and short rotation coppice; training for staff; and work to help more businesses meet industry quality standards.

The Rural Development Programme for England 2007-2013 is jointly funded by Defra and the European Union, with the aim of delivering targeted support to rural businesses and communities. It is managed in North East England by One North East, Natural England and the Forestry Commission.

The RDPE investment being managed by One North East combines larger projects to help many businesses in different sectors of the rural economy - including bioenergy and land-based skills, and projects adding value to agricultural and forestry products - with smaller investments to help individual businesses to start-up, grow or diversify, and support to develop more sustainable rural communities. 

RDPE Business Support is part of Solutions for Business, the Government’s package of publicly funded support products offering help to companies to start, grow and succeed. Solutions for Business makes it easier for companies to get the advice and assistance that they need.

For further information on the full package of support, visit www.businesslink.gov.uk/northeast.or call Tel: 0845 600 9006

For more information on RDPE in North East England, visit: www.rdpenortheast.co.uk

For more information on RDPE, visit:  http://ec.europa.eu/agriculture/rurdev/index_en.htm or
http://www.defra.gov.uk/rural/rdpe/index.htm

Ends.

For more information, contact Alison Laggan (press office) on 0191 229 6613, mobile 07766 424400 or email alison.laggan@onenortheast.co.uk

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