Investment to fund Sovex Malaysian expansion
SOVEX, a Wirral-based manufacturer of vehicle loading and parcel handling systems, has secured a £750,000 loan from the Merseyside Special Investment Fund (MSIF).
The company, which supplies to distribution companies such as DHL, DPD, Hermes, UK Mail, plans to use the cash to set up a manufacturing facility in Malaysia.
It run by directors Michele Dematteis, David Lindfield and Malcolm Dooley who have grown turnover from £8m in 2011 to £13m in 2012 and it is expected to hit £17m this year. Malcolm Jones from MSIF led the investment with support from Mark Borzomato.
Mr Dematteis said: “The parcel handling industry has undergone huge growth in the last couple of years largely down to the increase in online shopping which has significantly boosted our business.
“We also recently set up a sales office in Holland which has enabled us to tap into European markets including a €6m contract with Deutsche Post and this has also contributed to our recent growth.
“This latest round of funding from MSIF is being used to set up our own manufacturing facility in Malaysia. We currently use a sub-contractor out there but they can’t cope with the demand so we need a facility which can provide increased outputs. It will also be better for us as a business to manage our own supply chain.
“Having a base in Malaysia will also help us to tap into the Asia Pacific market and we are already speaking to some organisations in that part of the world.”
MSIF investment director Malcolm Jones said: “Sovex is a fantastic example of a business using investment for growth. The directors have not been afraid to take on continued investment to ensure that the business can deliver as its client base and outputs grow.
“We have made several investments into the business already and are very pleased that we will remain involved with Sovex and its team and also to be supporting the manufacturing sector.”
In the last two years Sovex has doubled its UK-based staff and now employs 105 people at its base in Prenton. It has previously secured seven investments from the MSIF totalling nearly £800,000.
