Lloyds TSB Commercial Finance has provided a
hire purchase facility for UK-based Shropshire Galvanizers to open
a new plant.
The £86,000 deal allowed the firm, a
subsidiary of Hereford Galvanizers, to open the new powder coating
plant in Oswestry, Shropshire in response to regional demand.
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Lloyds TSB CF provided the initial capital
outlay which allowed Shropshire Galvanizers to purchase the
necessary equipment for the plant without impacting its balance
sheet.
David Watkins, managing director of Hereford
Galvanizers, a £5.5 million turnover business, said the company
expects the new plant will lead to increased sales of £300,000 in
the first year and up to half a million in 2012.
Watkins said Shropshire Galvanizers, who
provide a galvanizing service to a number of local steel
fabricators and manufacturers, found several of their customers
were colouring their steel products following the galvanization and
decided to open their own plant to provide the service.
Lesley Williams, regional manager at Lloyds
TSB CF, said: “Hire purchase is ideal for businesses like
Shropshire Galvanizers, which are looking to invest in future
growth potential by replacing old machinery or investing in new
facilities.
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By GlobalData“In this case, the funding has enabled the
company to actively capitalise on regional trends to strengthen its
service proposition, and increase its customer base and turnover in
the long-term.”
grant.collinson@vrlfinancialnews.com
