ASTON FIRM INVESTS IN NEW PLANT AFTER CLINCHING FUNDING DEALUncategorized
A Birmingham manufacturer has expanded its production capacity after securing a new finance deal.
Aston-based K B Extruders manufactures refuse products and it has utilised funding from Lloyds Bank to purchase new machinery.
The family business, established in 2007, recycles waste material and uses it to produce polythene refuse sacks and bin liners for retail and commercial clients across the UK.
The business is fully accredited by the Environment Agency as packaging waste recovery processors.
After seeing a 25% growth in sales each year for the last seven years, the business decided to expand its production capacity by purchasing a new waste recycling machine. This has allowed it to recycle a greater amount of waste for the re-manufacturing process, thereby increasing the firms output.
After it approached Lloyds for support, the bank responded by providing a funding package to support the purchase of machinery.
The banks Commercial Finance team provided a hire purchase facility, and additional funding was granted using the Regional Growth Fund (RGF). This supports firms looking to invest in assets and create economic growth and local employment opportunities.
Due to the increased production capacity, the business, which currently employs 30 people, plans to create between 16-25 new jobs over the course of the next year.
Ali Ahmed, director of K B Extruders, said: By investing in this new machine, we now have the capacity to double in size to meet the demand of a growing customer base, and we hope to increase our turnover from £4.5 million to £15 million in the next 5 years.
The funding package provided by Lloyds Bank has been instrumental to our growth plans, and we now look forward to the future as we continue to develop the business and in doing so, we plan to take on additional staff
Mark Harnett, Relationship Manager at Lloyds Bank Commercial Banking, said: K B Extruders is a well-established family run business, and the investment in new machinery marks and important milestone in achieving its growth plans.
Lauro Rodi, Regional Manager at Lloyds Bank Commercial Finance, said the hire purchase facility provided to K B Extruders had enabled it to purchase the new machinery without putting pressure on its working capital, thereby providing the business with a strong platform for growth.