Inside Metelec’s ongoing transformation into a copper distribution and manufacturing business 

When we last spoke with Kevin Draper, Metelec’s Managing Director, around one year ago, he highlighted how the 20-year-old company was in the process of transforming from a traditional copper stockholding business into a sophisticated distribution and now manufacturing business. Recognizing upcoming growth in demand for copper, and as part of an older industry, Metelec is embracing a new era of sustainability and innovation. 

“We’re increasingly producing more added value components, and we’ve invested in CNC equipment to emphasize our manufacturing operations and bring a level of sophistication to our supply chain,” Kevin opens. “We’ve also now settled into our brand-new, state-of-the-art factory and distribution center, which is a fantastic working environment that’s also driving high levels of engagement across the team. 

“We’re serving two major growing markets: data centers and electric vehicle (EV) charging infrastructure. Despite reservations from the automotive industry, EV infrastructure is rapidly growing, and we supply the feeder pillar application, which is the interface between the charging station units and the local grid. The transition to green and clean energy is driving the need to upgrade or renew critical power infrastructure, and our interfaces, power systems, and battery storage products can also be used for other renewable applications. 

“We’re seeing growth in the scaling up of hydrogen power generation, for instance, in conjunction with renewable sources to create green hydrogen. This process uses electrolyzers that need copper busbars, and the application is not only for critical power infrastructure but will also be used to decarbonize critical foundation industries such as iron and steel. These opportunities and changes in the market fit well with our supply chain solutions approach: from supply and distribution of base copper product to the provision of prototype and series production of added value components in line with our customer requirements. 

“In terms of data centers, the rise of AI is causing a high level of activity across the market, and we’re seeing almost a reconfiguration of supply chains to cope with increased demand,” he explains. “In 2020, just before Brexit, we established a business in the Republic of Ireland, which not only gave us an advantage from a Brexit regulation point of view but has also enabled us to tap into the data center market as we’re in a key area for the sector’s switchgear supply chain.” 

Over the last 12-to-18 months, Metelec has not only made significant strides to transform the business but has also navigated challenging market conditions. “Turbulence in international markets has been causing huge fluctuations in copper price, and US tariffs are affecting trade flows in physical copper, driving further uncertainty,” Kevin says. “We have a clear strategy to cope with these fluctuations, which focuses on controlling the controllable, generating resilience by improving our supply chain management capability and adding value to our products and services. 

“We’ve brought in supply chain expertise from other sectors, including aerospace, automotive, and construction, to gain a deeper understanding of the market. We now play a key role in offering supply chain solutions in the distribution of copper products throughout our group’s vertical supply chain and other supply partners. 

“We’re providing kits of parts at scale, for instance, which are ready to assemble into switchgear and critical power distribution systems in the data center ‘grey space.’ AI is demanding critical uninterrupted power supply systems in more demanding, scalable, and modular forms, and Metelec is playing an increasingly integral role in translating evolving design needs into manufactured solutions. We’re also developing added value coatings in our copper component product offering to address durability and enhanced performance whilst being mindful of the base copper’s recyclability.” 

Committed to sustainability, Metelec is embarking on a journey to create a circular supply chain. “We’re maximizing the benefits of our vertically integrated supply chain back to primary copper production, where the primary copper smelting is done,” Kevin explains. “Our sister company is producing it from 100-percent recycled products, and the refining process is powered by renewable hydroelectricity. The result is the lowest primary copper carbon footprint in the industry, with a recently improved and certified 0.629 tons CO2 equivalent per ton of copper, compared with an industry average of 3.965 tons CO2 equivalent. 

“We see a huge opportunity to play a key role in the concept of reverse distribution, creating a circular approach from collecting and returning copper waste back through our group supply chain. We can capture our customers’ copper waste as a critical resource from direct production scrap, including recycling copper from data center ‘white space’, as server infrastructure is being renewed by fast-moving AI technologies and learning tools. This concept will only have greater importance as world resources are limited, and copper mining capacity takes decades to come onstream.” 

It’s clear to see that Metelec has progressed significantly since we last spoke to Kevin in 2024, and we’re keen to hear about what’s next for the business. “In cooperation with our logistics partner, ARO Logistics, we’re extending our footprint to open a warehouse facility in Belfast,” he reveals. “We’ve been distributing in the Republic of Ireland since 2020 through Metelec Ireland Ltd, and we’ll continue to serve the Republic of Ireland market from the Tullamore facility. The Belfast facility will provide extra flexibility together with our UK base, as well as benefitting our Northern Ireland customers as these markets continue to grow. 

“Our growth and transformation from a traditional stockholder to a manufacturer of added value components and supply chain solutions continues,” Kevin concludes. “We’ve also grown our revenue from around £20 million three years ago to pushing towards £50 million today. Overall, we’ll continue to work more closely with our customers with the objective of continuously improving the value of our products and services.”  

https://www.metelec.com