AI and EV boom sparks 300% sales surge at Welsh manufacturer

Nation Cymru staff

Growing global demand for power-generation for electric cars and AI is driving a 300% surge in orders for a Welsh engineering company.

Continental Diamond Tool (CDT), based in Kinmel Bay, manufactures custom-made precision tools, including those used to make components for gas turbines.

The company says the sharp rise in sales is tied to growing electricity needs created by technologies like AI data centres and electric vehicles.

The rapid rise of artificial intelligence has accelerated investment in data centres worldwide, adding to global electricity use.

Meanwhile, the increase in EV charging points for electric and hybrid cars is creating additional pressure on the grid as drivers look for faster, more convenient charging.

The Society of Motor Manufacturers and Traders says 30 per cent of new cars sold in UK are now electric while a further 12.5 per cent are plug-in hybrids.

The take up in other parts of Europe is higher with Norway reaching a staggering 95.9% market share for fully electric cars in 2025.

Diamond-encrusted grinding wheels and dressing tools made by CDT are used in the manufacturing process for critical parts within turbine systems used for land-based power generation.

The firm is predicting that sales of these tools could triple again by the end of the decade as demand for turbine technology continues to grow.

The sales boom comes just a year after CDT moved to a purpose-built factory that’s three times the size of its original premises half a mile away on the Tir Llwyd Industrial Estate.

It’s been made possible by a £4 million investment from the firm’s American owners, Indiana-based Continental Diamond Tool, which acquired and rebranded the company in 2018.

With the expansion, the company expects to see its workforce double to 80 over the next few years.

Production manager Justin Hughes said the emergence of artificial intelligence is contributing to one of the most significant periods of technological and industrial change in generations.

He said: “There has been a significant increase in orders for larger turbines, partly driven by the number of data centres being built around the world.

“At the same time, the charging infrastructure for electric and hybrid cars needs more power – the network needs to deliver more electricity, particularly at peak times.

“As a result, we’re seeing much more business for products used to build the power-generation systems needed to support superfast EV charging.

“The momentum is going in one direction as more people adopt these technologies.

“We’re living in a changing world, and developments such as AI and electric vehicles are influencing industries and manufacturing supply chains in ways that are not always obvious.

“For CDT, it’s about making sure we keep advancing the tooling solutions our customers will need in the years ahead.

“Our diamond-encrusted precision tools are used by our customers to profile conventional grinding wheels that grind precise sections of turbine blades that help anchor the blade securely within the engine.

“We are predominantly supplying to customers in Europe and America, but their blades complete turbine systems that may ultimately be installed anywhere.

“The increase in orders is helping us invest in the business, creating new jobs and pumping money into the local economy here in North Wales.”

Mr Hughes added: “Running in parallel, we’re also seeing activity take off from the aerospace industry.

“That’s partly due to the number of new planes being ordered – there have been some massive orders of late.

“But there’s also a crossover between aerospace and power generation because some of the turbines used to generate electricity started out as aircraft-engine technology.

“In some cases, older aircraft engines are being refurbished and adapted to drive generators, giving them a new use providing backup or additional power for sites such as data centres.

“Our diamond rotary dressers are used in the manufacture of new turbine components and also have a role when those parts are refurbished.

“So, the same technology and know-how that support aerospace feed into the power-generation market as well.”

“That growth means we’re adding new skilled positions here in Kinmel Bay.”

The company said that, in addition to growth from land-based power generation and aerospace, the rest of the business also remained busy, particularly among customers in the automotive industry.

It said orders from one of its largest automotive customers had risen by 78% this year.

Mr Hughes added: “We like to think that reflects the way we look after this customer and consistently deliver products of the highest quality. The tools have to be absolutely spot on.

“Our diamond rolls are wearing parts, and over time we have made significant improvements to their durability for this customer’s application. That has extended their lifespan and provided even better value for money.

“With this longstanding customer, it used to be considered good to get around 400,000 parts out of one tool. Now some are lasting for more than a million.

“Those improvements have been made incrementally because we’re constantly looking for ways to make the product perform even better.

“Underpinning all our success is our highly skilled and motivated workforce, who deliver high-quality products time after time.

“That, in turn, brings in more work because our industry still relies heavily on physical skills and manual dexterity at a very high level.

“Everybody understands what they need to do and the level of precision required for a tool to be acceptable.

“The companies coming to us are part of fast-growing, global industries, and that growth is creating exciting opportunities here in Kinmel Bay.”

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