Swansea computer chip recycling firm Pure Wafer returns to profit with record production levels in the city
A COMPUTER chip recycling company in Swansea has returned to profit after posting a loss in 2011.
Pure Wafer's operation near Swansea Vale is now operating at record production levels which has helped the company turn a loss of £451,838 into a pre-tax profit of £162,473.
The firm has benefited from continued growth in the semiconductor industry, an increase in volumes at stable selling prices and record low levels in the cost of manufacturing.
Pure Wafer chairman Stephen Boyd said: "We are pleased to record the success of the management team during the period to reduce costs across all sectors of the business at the same time as maximising revenue during the period."
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Pure Wafer has also undertaken a complete restructure of its balance sheet during the last six months and raised enough funding to pay off its key asset funders including Lloyds and RBS.
The company was then able to refinance and consolidate its remaining bank borrowings with HSBC in January, with a £3.5 million loan over the next four years.
Mr Boyd said: "The increased volumes have come from industry growth together with an increased market share from both Asia and
"This has enabled both manufacturing sites at Swansea and Prescott to once again raise production levels without any significant increases in labour and to run at record levels of productivity.
"It is encouraging that our cost reduction strategy has continued to be successful, enabling the group to reduce costs per unit by 4.9 per cent compared to the comparative period by engineering led cost reduction activities as well as high productivity levels as a result of economies of scale."
Pure Wafer works within the semiconductor industry which its chairman has confirmed is continuing to see growth thanks to the popularity of handheld devices.
He added: "The completion of the restructuring and refinancing of our debt has given Pure Wafer a long -term and stable platform from which to take advantage of the strong demand that we are experiencing for our products particularly from Asia and the US.
"With long-term growth forecast for the industry we believe that our significantly strengthened financial position will give us a strong foundation for future growth and we view the future with confidence."