Johnstons of Elgin invests to expand

Investment of £1.6m has enabled Johnstons of Elgin to extend and improve its knitting operation in Hawick and prepare for further growth.

On Wednesday the Scottish manufacturer officially opened a new building that adds 950sq m to the site, an 18% increase in overall site size, and a 25% boost in production capacity. The new facility has enabled the relocation of key processes like garment pressing and finishing, freeing up space in the main mill for a dedicated accessories department.

Johnstons has taken delivery of a new computerised knitting machine from Japanese company Shima. The Whole Garment SWG-XR is the first in the world and Johnstons’ technicians currently are in Japan being trained how to maximise the machine’s ability for seamless knitting.

The family-owned company says its new building in Hawick - the “cashmere capital” of Scotland - will accommodate up to 30 of the new Shima machines, which cost in excess of £200,00 each.

Johnstons’ plan is to create in the foreseeable future 50 new roles, ranging from experienced craftspeople to trainees entering the industry for the first time. In the past year it has added 11 new members as staff in the Borders town as well as replacing five more who retired.

The ribbon cutting ceremony

The official ribbon-cutting ceremony was performed by Brian McColm, the longest-serving staff member in Hawick, who has worked at Johnstons for 43 years. He was supported by Ross Pringle and Richard Knight, who also have served for more than 40 years. The company has more than 300 people in Hawick and 700-plus at its weaving plant and head office in Elgin.

The new Royal Warrant

While Johnstons of Elgin is pushing its own label via initiatives like its recent shop opening in London’s Burlington Arcade, its main business is making high-quality goods for third parties. Hermès, Chanel and Christian Dior are important customers, while this year the company marks 150 years of working with Burberry.

Team members Richard Knight_Brian McColm (the longest serving staff member) and Ross Pringle

It also makes all the cashmere products for British retailer Brora and the company’s founder Victoria Stapleton was among the guests at Wednesday’s ceremony. Mike Stoll of Manchester-based Private White VC and Ewan Thomson of knitwear specialist Hawico, Johnston’s near neighbour in Hawick, were also among those attending.

Renowned luxury sector investor Marty Wikstrom has been a non-executive director at Johnston’s for more than a decade. She commented that the new investment was part of the company’s strategy to “future proof” the business.

Johnstons of Elgin was founded in 1797. In May the company reported a pre-tax loss of £305,000 for 2024, down from £4.6m profit the previous year, after what it called a “challenging year” for the global luxury sector. Annual sales fell by 6% to £94.2m, down from £100m the previous year.

Jenny Urquhart, deputy chair of Johnstons and Mike Stoll of Private White VC

Chairman Neil Urquhart, whose family own the business, confirmed Johnstons is doing well after a dip in demand immediately after the COVID-19 lockdown.

Chris Gaffney, CEO of Johnstons of Elgin, added: “There is nowhere better in the world to knit cashmere than in Hawick and Johnstons are committed to investing in the town and its highly skilled workforce. This expansion will allow us to meet the growing demand for the highest quality Scottish knitwear and accessories, whilst also improving facilities for the team. We look forward to welcoming many new employees in the coming years as we continue to train and develop the next generation of craftspeople”.

The new building was made possible by the purchase of two adjacent car parks, which have increased on-site parking capacity from 23 to 43 dedicated spaces.