Birmingham-based commercial laundry specialist Zip Textiles is set to create up to 30 new jobs after securing a £2.2 million financial package.
The deal with Lloyds Bank has seen the Tyseley firm invest in its infrastructure as it seeks to widen its area of operations.
Zip Textiles offers a range of bed, table and kitchen linen, together with chefs’ wear and other apparel for the hotel, restaurant and catering industries, laundering and replacing these materials daily.
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To help increase its capacity, Lloyds Bank Commercial Finance supplied an asset finance facility which has allowed the firm to purchase new laundry equipment which will enable it to be 30 per cent more efficient.
The increase in productivity will allow the firm to increase its operational area from its current 60-mile radius of Birmingham to a 90-mile distance, whilst creating up to 30 new roles to add to its 160 strong workforce.
The investment in the firm’s infrastructure comes on Redfern Park Way, adding 20,000 sq ft of space to its existing 32,000 sq ft unit.
The investment comes in addition to an ongoing continuing term loan of £1.8million, which has helped the company with working capital to support its growth. The company hopes to achieve an annual turnover of £14 million by 2019.
Tariq Mahmood, director of Zip Textiles, said: “We’re pleased to have confirmed our recent expansion following the financial package provided by Lloyds Bank Commercial Finance.
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“This is an investment which will help us to significantly increase our capacity and broaden the area in which we operate, which in turn will make our business more profitable.
“It’s great to have helped to boost local employment with the creation of around up to 30 new jobs in the coming months.
“This is a fundamental part of our growth plan, and we look forward to continuing to work with Lloyds Bank to realise our ambitions.”
Lauro Rodi, regional manager at from Lloyds Bank Commercial Finance, said: “The hospitality industry is growing rapidly as the economic recovery continues, and Zip Textiles is well placed to benefit from the thriving nature of the sector.
“Asset finance is the ideal way for businesses to invest in the infrastructure of their businesses without affecting their cashflow, and we were pleased to work with Zip Textiles to enable this important expansion of their business.”
Kevin Roberts from Lloyds Bank Commercial Banking, added: “Zip Textiles is a great example of a firm which is helping to drive the economic recovery, and part of our commitment to help businesses grow.”