Finance Yorkshire funding covered for plastics package manufacturer
A sustainable plastics packaging manufacturer has the future all wrapped up thanks to a £150,000 business loan from Finance Yorkshire.
Keighley-based Arvensis, sister company of food plastic manufacturer PFF, was looking for finance for working capital following a huge hike in the price of plastic.
Based in Airedale Park in Keighley, the company recycles plastic bottles into plastic sheets and packaging for the food, healthcare and cosmetics industry.
Now, thanks to the investment from Finance Yorkshire, the specialist company, which supplies packaging to high profile clients including Morrisons, ASDA and Marks & Spencer, is looking to secure new orders.
Joint Managing Director Stephen Dowe said: “Due to the rise in plastic prices we were short on working capital to fulfil our substantial order book and operating at a reduced level.
“Our depleted working capital was restricting our growth and we needed a financial kick. This loan has meant we can satisfy our order books and look with confidence to a strong future.
“The important role that packaging plays cannot be understated. In recent decades, packaging developments have been a catalyst in broadening retail ranges, giving us a variety of consumer goods that previous generations wouldn’t have thought possible.
“Now, with the huge steps that we have taken in plastic film extrusion and thermoforming technology, we can continue to deliver the most sustainable packaging solutions to some of Britain’s best known retailers.”
The company, which has a turnover of £15m, has previously invested £1.25m in new plant to double the production capacity of manufacturing recycled PET (Polyethylene Terephthalate) sheet.
Commenting on the relationship with Finance Yorkshire Stephen added: “Our Investment Manager, Jonathan Craig saw how our business had been affected by the rise in plastic prices and the reasons why it would not impact on trade going forward. He was extremely supportive. The relationship we built up and the knowledge Jonathan took on board meant he could make a proper and considered decision by seeing where our business was.”
Finance Yorkshire Investment Manager Jonathan Craig said: “This company produces specialist products that it uses within the group and that it also sells externally. It has made significant investment in the manufacturing process which will allow it to grow strongly and remain at the forefront of its sector.”
Darren Precious, who runs Keighley Business Network on behalf of Bradford Chamber of Commerce, said:
“Many firms are still struggling with a lack of working capital at present. It’s good to know that Finance Yorkshire is getting that crucial support out to firms at this time. They are helping to turn the economy around and ensuring that businesses like Arvensis will lead the way out of the recession.”
Finance Yorkshire provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m to help a range of small and medium sized businesses to meet their funding requirements for growth and development.
The project is supported financially by the European Union. It has attracted £30million investment from the European Regional Development Fund (ERDF) as part of Europe’s support for the region’s economic development through the Yorkshire and Humber ERDF Programme, £15million from Yorkshire Forward’s Single Programme, and £45million match funding from the European Investment Bank.
For more information about Finance Yorkshire, please visit www.finance-yorkshire.com or ring 0845 649 0000.
Note: this news article is from Finance Yorkshire’s previous fund. Read more about Finance Yorkshire