THE days of UK firms moving work to China simply to cut costs are over, according to a manufacturing boss.

Charlie Peppiatt, Stadium Group chief executive, said companies have to be more focused on suiting customers’ local demand.

He was speaking after the electronics firm strengthened its global position by moving to a new Chinese plant, which he said will increase its ability to deliver clients’ exact needs.

Mr Peppiatt said the factory will operate as a centre for excellence for the Asian region, complementing the company’s existing Hartlepool site.

Its regional plant employs more than 130 staff and is the firm’s European hub for integrated electronic manufacturing services (IEMS), which oversees specialist printed circuit board work.

He said both factories were a reflection of how companies need to be closer to customers.

Mr Peppiatt told The Northern Echo: “We have moved on significantly from the days of shifting things out to China to save costs.

“It is about serving the local market because customers want local services.

“Underpinning that and our growth is a core strategy of offering centres of excellence in Hartlepool and Asia.

“We had a site in south China that we took on in 2000, but it’s now a little tired so we exercised our right on a lease option and have moved to a more appropriate base.

“Having centres of excellence in both regions is helping us strengthen the business on both sides of the globe.”

Stadium previously closed a sister plant in Rugby, Warwickshire, moving jobs to Hartlepool, and last year invested £1m on machinery to help meet customers’ demands.

Its new equipment includes a surface mount assembly line, which the firm says allows it to build larger circuit boards, and Peter Whitley has been appointed as the site’s general manager.

Mr Peppiatt added: “We have got a good team at Hartlepool, and it is important to the business as our European centre of excellence.

“Peter comes with significant experience to continue the work we are doing there.”

Last year, Stadium bought United Wireless in an £8m deal to expand its technology division, which supplies products for interfaces and displays.