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New site in South Wales will be crucial to Wales’ continued industrial transformation.
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Work in the region set to create £18m of additional GVA as well as more well-paid jobs in the region.
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HVM Catapult plan to support 100 enterprises in first five years in South Wales focusing on research and development.
Baglan, UK, February 2025: The High Value Manufacturing (HVM) Catapult has officially opened a new cutting-edge digital factory hub in Baglan, South Wales, in collaboration with Welsh Government.
Designed to supercharge innovation in Welsh manufacturing, the facility, opened by Rebecca Evans, Cabinet Secretary for Economy, Energy and Planning at the Welsh Government, is expected to unlock up to £18million in additional GVA annually within five years by helping manufacturers improve their productivity, efficiency and sustainability through the adoption of digital solutions.
The site is located at the Bay Technology Centre in Port Talbot and will be home to state-of-the art manufacturing equipment funded by the Welsh Government. The facility is part of 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%) 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% 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.
Rebecca Evans, Cabinet Secretary for the Economy in Welsh Government, said:
“Wales has a strong industrial heritage and 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 Catapult network in addressing current challenges and taking advantage of new opportunities.
“This strongly aligns with our innovation strategy, Wales Innovates, and our commitment to ensuring Wales remains a leading manufacturing nation. 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. Our partnership with High Value Manufacturing (HVM) Catapult strengthens our position significantly.”
HVM Catapult Baglan is the second HVM Catapult site in Wales. It is supported by Warwick Manufacturing Group (WMG) and the Advanced Manufacturing Research Centre (AMRC), widening Welsh access to HVM Catapult’s UK-wide network. It will build on the success of AMRC Cymru in Broughton, part of the University of Sheffield AMRC, which, since opening in 2019 backed by £20m from Welsh Government, has helped more than 100 Welsh businesses make their products faster, cheaper, safer, cleaner and more sustainable.
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 R&D activities in the area. Over the first five years the initiative is projected to contribute an additional £18 million in GVA annually through targeted support – a figure that could double when aligned with the Celtic Free Port.
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 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.
HVM Catapult Director of South Wales, Jacqui Murray said:
“Manufacturing goes back generations in Wales, and I strongly believe that the Welsh manufacturing sector can be creative and prosperous for our future generations too. 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.”
HVM Catapult Baglan will be managed by WMG in collaboration with AMRC Cymru, which will run the digital factory hub. The hub has been granted £1.5 million of Welsh Government innovation funding and will showcase the latest digital technologies including a SMART workbench, advanced robotics, virtual and augmented reality and additive manufacturing.
