Aston-based kitchen and toilet roll manufacturer Freedom Paper Converters is targeting a 60 per cent uplift in annual turnover following the introduction of a third production line.
The new line has been financed with support from HSBC’s South West Midlands commercial team through the bank’s Assisted Asset Purchase Scheme.
The scheme is designed to support SMEs grow their business and is supported by the Government’s Regional Growth Fund (RGF).
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The company has installed machinery from Italy that will enable it to increase production capacity from 20,000 tonnes to 30,000 tonnes a year, plus offer a wider range of products to the market.
Freedom Paper Converters turned over £10 million last year and expects the new production line to help increase revenues to £16 million over the next five years.
The move safeguards eight current jobs, and the company will be creating new roles as a result of the expansion. HSBC has provided a £3.4 million funding package to support the investment in the new equipment and to provide ongoing working capital facilities in a deal led by senior commercial manager Paul Witter.
The company also received a £195,000 RGF grant.
Freedom Paper Converters was formed in 1996 and is a family-owned and managed business.
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Employing 30 people, the company mainly supplies to the wholesale market and high street discount store multiples, and plans to widen its distribution chain to include supermarkets.
It plans to add two further production lines over the next years and also has ambitions to develop a purpose-built production and distribution facility at its Electra Park premises.
Managing Director Mohammad Ali said: “This new production line means we can offer a wider array of products and increase our production capacity to meet demand. Our philosophy is that you must keep investing to stay ahead of the competition and that is why we have ambitious plans over the next few years to grow the business.”
Andy Willett, HSBC area commercial director for South West Midlands, added: “This investment will create employment as well as safeguard existing jobs, so it is a boost for the local economy.”