Reds10 Group takes stake in Hull steel fabrication firm ESL Fabrication Engineers

Hull steel fabrication business ESL Fabrication Engineers has been partially acquired by the Driffield-based offsite modular construction group

A Hull-based steelwork company employing just under 50 staff has been partially taken over by leading offsite and modular construction firm Reds10 Group. ESL Fabrication Engineers was established by father and son duo Paul and Gareth Thompson in 2010, and focuses on steel fabrication, encompassing walkways, spiral staircases and fire escapes.

The company operates out of a purpose-built facility on Burma Drive, where it has produced structures that have been exported to destinations as far afield as New York and Papua New Guinea. ESL is reported to have grown consistently since its inception 16 years ago, and now Reds10 — which manufactures its buildings in Driffield — has made a strategic investment in the business.

ESL will be incorporated into the recently formed Reds10 Group, alongside Reds10 and its eight sister companies. The two firms are said to have a well-established working relationship, having collaborated over the past five years on the delivery of public sector buildings.

Paul Ruddick, chief executive of Reds10 Group, said: “Having worked with ESL for several years, we’ve seen first‐hand the consistent quality of their service and their ambition for excellence and growth, values that closely align with our own.

“Bringing steel fabrication into the Reds10 Group adds a critical piece of the jigsaw as we launch our next phase of strategic growth to exploit advancing technologies, while integrating AI at every level of the business.”

Gareth Thompson, co-founder and managing director of ESL said: “We’ve come a long way since ESL’s inception in 2010 and our partnership with Reds10 feels like a natural next step that will bring clear benefits to both businesses. This marks an exciting next phase in our evolution, and we look forward to building on the strong working relationship we’ve developed with Reds10 in recent years and maximising the opportunities ahead.”

Reds10 and ESL’s collaboration has concentrated on the defence, education, justice and health sectors. The fresh partnership comes after robust financial performance from Reds10, which posted revenue of £144.7m and operating profit of £6.8m, reports Hull Live.

The group, which also operates in the South East, is targeting revenue growth to £500m through expanded activity in the healthcare, affordable housing and temporary accommodation markets.

Its five Driffield manufacturing facilities span 300,000 sqft. The structures produced there are subsequently transported and erected on site at schemes throughout the UK.