Arkote History – A Cut Above

With a history stretching back over 130 years, Arkote is still a thriving and innovating business in the 21st century, making us world leaders in machine knives for the tobacco industry.

The company takes its name from a contraction of the name of its parent firm: A R Heathcote & Company. The original business was formed by Albert Reaney Heathcote in 1881, and was based in Dacre Street in the Park district of Sheffield, where the Parkhill flats would later stand.

Born in the first decade of Queen Victoria’s reign, AR Heathcote had previously been a chisel and edge tool manufacturer. The first sale of tobacco knives by him was recorded on 5 April, 1881, to WD & HO Wills for the sum of £24 17 shillings. From that time on the firm would continue to supply specialist knives to makers of tobacco cutting machines. But such knives were not the only product. The company was simultaneously selling edge tools, and in addition had a flourishing business in grindstones quarried at Ackworth near Pontefract.

Though the business prospered until the First World War, it soon declined as its founder grew older, and the worldwide economic slump of the 1930s arrived.

Meanwhile, in August 1919, A R Heathcote, then already aged 75, had taken Percy F Osborne into partnership and a limited company was formed. Mr Heathcote was now Chairman and Mr Osborne, who had previously been works manager for J Riley Carr, was Managing Director.

Following Mr Heathcote’s death in 1941 at the remarkable age of 97, Mr Osborne became the sole owner of the company and assumed the Chairmanship. During the period between the two world wars the company’s activities had undergone a significant change. The edge tool business had disappeared and now the main activity was the manufacture of knives for the tobacco industry. The company had also extended its activities into the manufacture of machine knives for the paper, metalworking and woodworking industries.

In 1969, AR Heathcote & Company was sold to Balfour Darwins Limited, after which it had various owners before finally ceasing manufacturing.

Arkote, however, had a happier future. In 1979, Arkote acquired Samuel Staniforth Limited, an old-established Sheffield cutlery forge. As a consequence, for the next two decades Arkote became one of the main manufacturers of trade knives used in the catering and meat industries. That business was sold by Arkote in 1999.

In the meantime, after a very serious fire at the Hawk Works, in 1985, the efforts made by the whole workforce at Arkote to get production restarted illustrated the wonderful co-operative spirit of the business. No customers were let down, and indeed very few were even aware how close Arkote had been to disaster. Many of the staff have very long service records and it has been said ‘Arkote workers don’t leave, they retire’.

In 2002, Chairman John Osborne and Managing Director Joe Truelove took the decision to sell the business and in December 2002 the company was bought by Fi-Tech Inc of Richmond Virginia in the USA, which had been and remains today Arkote’s long time distributor for North America.

Little would change, however: John Osborne remained as a Director until 2007, when Arkote regretfully accepted his decision to resign in order to fully enjoy his retirement. Mr Osborne’s contributions to the business are still apparent today. 

Fi-Tech is owned by the Bassett family. The company had been the distributor for Arkote products in the USA and Canada since 1980 – although its Chairman Lee Bassett had been involved with the distribution of Arkote products since 1967. 

The Fi-Tech company is the supplier of a well known range of Adamantine Grinding Wheels and Discs, first introduced to the tobacco industry in 1967. These electroplated abrasive tools made to original manufacturers’ specifications are utilised in all cigarette-makers and tippers, and contain either high quality industrial diamond or Borazon®, a synthetic diamond material manufactured by the General Electric Corporation in the USA.

Fi-Tech Inc. is also heavily involved in the supply of capital equipment and spares to the non-woven fabric and synthetic fibre industries. A new company, Fi-Tech Europe, now operates from the Arkote’s premises to supply spare parts and machinery to UK and Europe.

Meanwhile, close links with special steel technology, and the ability to implement new advances in the manufacturing programme, have been the key factors in the continuing success of the Arkote range of knives.

Yet, although the most modern techniques play an important part in production, the eye and the hand of the craftsman still remain vital in determining the quality of the finished product.

The Fi-Tech company is the supplier of a well known range of Adamantine Grinding Wheels and Discs, first introduced to the tobacco industry in 1967. These electroplated abrasive tools made to original manufacturers’ specifications are utilised in all cigarette makers and tippers, and contain either high quality industrial diamond or Borazon®, a synthetic diamond material manufactured by the General Electric Corporation in the USA. A modern and environmentally-friendly process is used to manufacture these wheels and discs.

As well as producing knives for primary and secondary cigarette production, the company also offers a range of cigar cutting knives and specialist knives and wear parts manufactured from tungsten carbide. Arkote is also able to supply a complementary range of knife grinding products used both in the primary and making/tipping areas of a tobacco manufacturing facility.

High quality bonded abrasive wheels made to original manufacturers’ specifications can be supplied for most model tobacco-cutters. The Diamond Dressers required to dress these wheels are also supplied by Arkote. A world leader in its niche market Arkote, exports up to 90 per cent of its production to over 80 countries. To complement its high quality products Arkote also provides a prompt and
reliable delivery service worldwide.

Due to the growth in the business, a decision to move from Hawk Works to larger premises was now taken. New premises were being planned just off the Sheffield Parkway; a direct link to the UK’s main North – South arterial route, the M1. The developers, J F Finnegan, were happy to customise one of the new units to Arkote’s specification and the move took place in October 2008.

The following year Arkote added another string to its bow. Joseph Pickering Ltd was established in 1824 as a manufacturer of world famous Blanco polish. It later moved into the manufacture of boxes for packaging. Arkote was a customer for Pickering’s specialist ‘stitched’ boxes and when the company went into receivership in 2009 Arkote acquired the wire stitched box part of the company. Arkote now manufactures its own boxes, and also sells boxes to customers who previously bought from Pickerings plus many notable UK businesses such as Selfridges and the British National Archive.

Stepping outside of the tobacco industry, in 2015 Hardy UK Ltd was added to the ever growing group. Specialising in the design and manufacture of a comprehensive range of helical blades for leather shaving and fleshing to the global leather industry, the Hardy UK home is just a few minutes drive from the historic docks of Liverpool, UK. Arkotes ownership of Hardy UK consolidates a reputation garnered over more than a century and adds a drive and enthusiasm required for evolution based on innovative technologies and sustainable manufacturing.

Then, in the early part of 2016 Arkote acquired HMK Ltd of Congleton, Cheshire. The two businesses have a long standing relationship, supplying Tungsten Carbide knives to the Tobacco industry and the HMK acquisition expands the total product scope and provides security for the future of HMK.

With a history now stretching back over 130 years Arkote and our group companies are still thriving and innovating businesses in the 21st century.

Content courtesy of “Nostalgic Memories of Sheffield”. With addendum by Rob Andrews 2017 & 2019.

The worldwide group of Fi-Tech Inc companies

Arkote is proud to be a part of the Fi-Tech Inc worldwide group of companies. The group, whilst diverse in nature, shares a common vision standing for quality, innovation, continual improvement and a passion for what we do.

Fi-Tech founder and former Arkote chairman Lee Bassett’s first association with Arkote and tobacco knives started out in the 1960’s, although Fi-Tech did not become the official US distributor for Arkote until 1980. In 2002 Fi-tech negotiated the purchase of Arkote, and the Bassett family has taken a keen interest in supporting the Arkote management team and reinforcing the brand ever since. Under the guidance of Jeffrey and Todd Bassett, Fi-Tech, Inc. now has stewardship over a group of businesses consisting; Fi-Tech de Mexico, Euro Spares and of course Arkote Ltd. Arkote has two further divisions, Fi-Tech Europe and Stitched Boxes and two separate companies HMK Ltd in Congleton and Hardy UK Ltd based in Liverpool.

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