How Precision Micro is making strides towards net zero targets

Specialist engineering company Precision Micro has put sustainable practice at the forefront of its business. Here, Managing Director Tim Barrett explains how the business is reducing its environmental impact with the support of LDC. 

About the business

Precision Micro is a leading specialist engineering company based in Birmingham, operating from a state-of-the-art facility spanning 4,650 sq m. The company’s industry-leading chemical-etching service enables the production of millions of precision-etched components for a wide range of product applications for high-tech industries such as aerospace, automotive and energy.

The business has made great strides in its environmental initiatives. Since LDC’s significant investment in 2018, the management team have accelerated the integration of sustainable practice across Precision Micro’s business model. 

Reducing environmental impact

Precision Micro has invested heavily in improving its waste management system by increasing the volume of materials it recycles. This has resulted in recycling rates increasing from 90% in 2018 to 98% in 2022, reducing total waste by 62 tonnes in the process.

Through embedding these principles, the business is operating a circular economy method whereby products and materials are kept in circulation. While these new measures are better for the environment, they also act as a cost saver for the business – producing less waste removes costs associated with waste storage and disposal.

Meanwhile, more than 35% of the water used in the photochemical etching process is now recycled and 100% of the electricity used to power its operations procured from renewable sources.

Tim says: “We were early adopters of recycling but there’s always room for improvement. It’s been a case of seeing how close to 100% we can get to and we’re nearly there. Alongside that we’re finding new ways of saving water and buying electricity only from renewable sources is a no-brainer for us – it’s absolutely the right thing to be doing.

“These have all been fairly quick wins but there’s peace of mind in knowing LDC back us and we have support and advice on hand when we need it and can learn from what other portfolio companies are doing in this space.”

Futureproofing operations through technology

As a specialist engineering business, Precision Micro has looked carefully at its technology for ways to reduce its environmental impact and increase efficiency. In 2020 the business invested £5m to reconfigure its processes and buy new, more efficient specialist machinery, resulting in a reduction in the production of waste ferric chloride.

And in October 2023, the company invested a further £1.8m in the addition of a second etch room at its Birmingham site, which now has three energy-efficient etch machines alongside a bespoke semi-automated print frame.

This investment, driven by global demand for next-generation energy technologies, is actively supporting sustainable innovation by developing components used in hydrogen production and storage, carbon capture, green energy buffering and electric and hydrogen electric vehicles.

Backing from LDC

As with all portfolio companies, LDC has supported Precision Micro with a robust ESG audit. This has helped the management team to identify opportunities for improving the company’s environmental impact, as well as its wider ESG credentials. Our team also supported the business as it put together its first ESG Impact Report in 2023.