Expansion on the cards for construction materials manufacturer
A Barnsley-based manufacturer of construction materials has announced plans to expand with the support of HSBC UK.
Naylor Industries has secured a £5m funding package from HSBC UK to support the business through Covid-19 trading conditions and to facilitate projects for future growth.
At the start of the pandemic, Naylor Industries saw a downturn in its traditional construction markets, with over half its employees being put on furlough schemes.
Simultaneously, the business’s cable filler and ventilation duct teams were busy supplying healthcare-related projects across the UK, including the NHS Nightingale Hospitals.
Despite the disruption, Naylor intends to pursue growth opportunities and has secured £3m worth of asset finance from HSBC UK to support capital investment projects. This funding will increase capacity and productivity in two of its businesses.
The first comprises a £2m investment in its Barugh Green concrete lintel factory, which addresses an important capacity constraint with the acquisition of new state-of-the-art machinery.
The second is a £1m investment in Naylor’s Wombwell bespoke extrusions business.
New equipment at the site will increase running speeds by up to 40% and increase production of the business’s ventilation duct products. This project is also being backed by a Leeds City Region Enterprise Partnership business productivity grant worth £100,000.
In addition, HSBC UK has provided a £2m overdraft facility to support working capital requirements during the business’s expansion as well as cover for any eventualities related to Covid-19.
Edward Naylor, Naylor CEO, said: “At times like this, we’re pleased to have a broad portfolio of activities included in the business.
“Whilst there is still considerable uncertainty in our core construction markets, we see opportunities for growth in our other markets and are grateful to HSBC UK for supporting our development plans.”
Andy Richardson, relationship director for HSBC UK, Corporate Banking, added: “Naylor Industries has a long heritage in South Yorkshire, servicing a vast, international customer-base for many years.
“We’re delighted to be supporting the business through these unprecedented market conditions and welcome the company’s decision to continue investing for future growth.”
Naylor Industries employs 400 people across five manufacturing sites: three in the Barnsley area, one in Fife and one in the Midlands.
Its product range includes clay and plastic pipes and concrete products.
Most recently, the company has developed a bespoke products division, Naylor Specialist Plastics, which manufactures tubes and profiles for a variety of applications and industries.
The group lists its annual turnover at £55m.