It might not be the first name that springs to mind when you say 'solid surface' but Sylmar Technology and the team behind the Maia brand are hoping to change all this. Rebecca Nottingham went to meet md Peter Holt...
By Peter Holt's own admission, Sylmar Technology and its brand of solid surface worktops, Maia, are not the most famous names in the worktop sector but that's something Holt and his team have quietly been changing since he took over the reins in 200
Although he 'fell' into it originally, Holt has a long history within the KBB industry. He bought a share in Orama, a laminate manufacturer based on the same industrial estate as Sylmar's current site in Derby, back in February 2002. While he was there Holt spent time researching possibilities in the solid surface arena.
"My research showed that although laminate was still a great product and held a huge percentage of the market, it had been around a long time," explains Holt. "There was clearly a big gap between laminate and top-end bespoke solid surfaces and natural stone like granite."
Orama later acquired Sylmar Technology, a small company specialising in solid surfaces to gain insight into this sector. The company then developed and introduced Maia, a brand of solid surface worktops, under the Sylmar Technology arm of the company. The Maia range of worktops is constructed from a 3mm acrylic solid surface sheet, glued to mdf.
"Maia was one of the first products in the UK to use this concept," explains Holt. "Ours might not be the best known company or brand, but that's because we've stayed out of the limelight, kept our head down and just got on with what we do. I'm fairly safe in saying that we're probably the biggest manufacturer of solid surface, worktop blanks in the UK, without a shadow of a doubt."
After developing Orama from a business with a £16m annual turnover to a turnover of £32m, Holt, along with Robin Trotter and Phil Slater, hived off the Sylmar side and sold the business in 2006. The majority shareholders took a back seat role and left Holt to run the business on a day-to-day basis alongside financial director Martin Coles.
"Martin joined the company as financial director in 2007 and we just hit it off," says Holt. "We had the same ideas and a clear vision of where we wanted the business to go and it wasn't the same as the other directors, because they were in a different place career wise. Martin and I discussed our options and eventually, in May 2008 we acquired the business."
Despite buying the business during one of the rockiest periods in this industry's history, the business is enjoying continued success with the Maia brand in the UK. I caught up with md Peter Holt at the company's impressive manufacturing plant in Derby to talk about market issues and the future.
Q Times are tough at the moment, how's business as a British manufacturer?
A I'm not saying that everything is rosy in the market, of course it isn't, but we have grown as a business even during this difficult time. Not that it's been easy, but we've just kept our heads down and got on with it. It was pretty tough over the summer, we had to be cautious so as not to lose any of our people. We got through it though, thanks to hard work and huge support from our workforce. I'm not saying that the recession is behind us, but the past few months have been good for us. In fact, last month was our best ever on record.We're running 12-hour shifts, the guys are earning overtime again and we're just recruiting a new customer services person and new people on the shopfloor. I'm not arrogant enough to stand up and say everything is great, but I'm pleased with how things are going, particularly considering the financial circumstances and pressure the industry is under.
Q What's your route to market with Maia?
A Our route to market is through multiples and independent retailers throughout the UK. One of the customers that gave us the biggest exposure and created awareness of the Maia brand was MFI. We were in every store across the UK, with five displays in each. As you can imagine, that worked extremely well for us. The brand was seen by thousands of consumers up and down the country and we wouldn't change a thing about that.
Q You must have felt the pinch when MFI went under.
A I've been around for 24 years in this industry and had traded with MFI for many, many years, so I knew the people concerned. I have a great financial director and although it was a shock, we'd been cautious and made good provisions. There's no doubt that we will feel the loss of MFI in our turnover, because if you lose a multi-million pound account then you'll feel that loss from a turnover perspective. Whether that cripples your business depends on how good an accountant you've got and how the rest of the business is made up. On a more positive note, we've also benefited from the loss of MFI in so far as they were budgeted to fit £550m worth of kitchens in the UK market and that demand doesn't just evaporate overnight.
Q What's your strategy for independent retailers?
A What the multiples have done for us is to help develop awareness of the Maia brand and product. The independent retailer is, and always has been, a really important part of our business. When the Maia product was conceived we went out into the market and talked to independent retailers first.We do a lot of promotional activities designed especially for the independent and in fact, the Maia concept is aimed at giving independent retailers the ability to increase the average order value of the kitchens they sell.The independent retailer is very good at customer service and as a business owner and consumer myself, that is very important to me. There's no denying that the market is tough at the moment, but I believe the retailers who will survive the recession are the ones that look after their customers.
Q In a competitive market what does Maia offer the kitchen specialist and the end consumer?
A For the consumer it gives them an aspirational worktop at a very competitive price. It broadens their options and bridges the gap between laminate and higher end surfaces. For the independent retailer, it offers a well packaged and well marketed product that's easy to sell, but most importantly it adds value to the kitchen sale.
Q What's next for Sylmar Technology?
A The solid surface market still has a long way to go and we've still got a long way to go in terms of the Maia brand.In the UK, there's probably in the region of around 100,000 to 110,000 worktops manufactured each week. That's a lot of worktops. Solid surfaces account for just 10% of that total so there's huge growth opportunity here. For that reason the manufacturing plant is geared to cope with the potential growth of the brand.There's still a long way to go with solid surfaces in the UK and that's what is so exciting. I'd say we are still very much at the embryonic stage of solid surface worktops in the UK market. We've invested a lot into the business over the past year and that will continue. Our long-term plan is to grow the Maia brand and to find ways to break into these potential markets.In the short term, we're moving into bathrooms and will be introducing a range of Maia surfaces specifically for the bathroom. We're also launching Avonite bathroom surfaces and kitchen accessories.
