AFTER securing funding under HSBC’s Assisted Asset Purchase Scheme, High Peak based Avanti Conveyors is broadening its manufacturing capabilities and planning expansion into new international markets.
The scheme is part of the Government’s Regional Growth Fund (RGF) designed to support small-to-medium-sized enterprises (SMEs) grow their business.
Avanti designs, manufactures and installs corrugated box conveyor systems.
The £100,000 equipment finance funding from HSBC Commercial Bank, in addition to a 20 per cent grant from the RGF, will enable the company to purchase equipment to bring the fabrication element of its manufacturing process in-house, creating two new jobs.
Avanti exports 80 per cent of the 200 conveyor units its produces a year to markets including Europe, South Africa, Australia and the Middle East, and clients include the likes of IKEA. The cost savings it will achieve through the new fabrication facility will enable it to target Asia and further growth in the Middle East in the New Year, with the company planning to appoint agents in these territories in the first quarter of 2013.
A family-owned business, Avanti began manufacturing its own units four years ago, taking advantage of the economic downturn to lower costs and improve quality and control.
The business now employs 25 full-time employees and 12 sub-contractors and plans to move to new purpose built premises in the next three to four years to assist further growth.
Managing Director Simon Mander said: “This is an exciting time for Avanti; we saw the recession as an opportunity for us and bringing manufacturing in-house has brought many benefits.
“This next step will result in Avanti making more of the parts of our units ourselves, which will lower our costs and give us the room to target these new international markets.”
HSBC Derbyshire Commercial Manager Seeta Parmar added: “Avanti has been working hard to develop the business over the past few years and they are now one of the market leaders in this field, supplying customers around the world. Asia and the Middle East are big growth markets and should bring additional benefits to the company, and indeed the local economy.”