New machinery means new jobs at Rowley Regis engineering firm
An engineering business based in Rowley Regis has bought two new pieces of machinery with the support of a £460,000 funding packing from Lloyds Bank, creating four new jobs.
Cube Precision Engineering designs and manufactures press tools and CNC machine components for aerospace, automotive and defence companies.
The business recognised an increasing need for its products, and identified the need to invest in new machinery to speed up its manufacturing process to cater for demand.
It approached long term banking provider, Lloyds Bank Commercial Banking, which provided £460,000 of asset finance to support the purchase of two new milling machines for cutting large, complex components.
Additional funding of £115,000 was secured through the Regional Growth Fund (RGF) which supports businesses looking to invest in new assets and create local economic growth.
Following the purchase of the machinery, the speed of Cube Precision Engineering's manufacturing process has increased by 30 per cent, enabling the business to complete customer orders at a faster rate and increase its capacity to take on new contracts.
The company, which has a turnover of around £4 million, has also taken on four new members of staff in order to handle its increase in new orders, with plans to create further jobs in the next six months.
Neil Clifton, managing director at Cube Precision Engineering, said: "We had been experiencing a high level of demand for our large CNC machining components and, in order to fulfil this, we needed to increase our manufacturing capabilities by purchasing new machinery.
"The team at Lloyds Bank have played an instrumental role in helping us make this investment and we are now able to manufacture our products at a timelier rate. Moving forward we plan to pursue a growth-through-acquisition strategy by vertically integrating our suppliers into the business, and we are grateful for the bank's support."
Keith Moore, regional manager at Lloyds Bank Commercial Finance, said: "The asset finance facility was an ideal option for Cube Precision Engineering as it allowed it to purchase new machinery without putting pressure on its working capital, giving the business a strong platform to fulfil its future growth ambitions."
Mark Meakin, Relationship Manager at Lloyds Bank Commercial Banking, said: "Cube Precision Engineering is a well-established local business in a highly skilled area of manufacturing, and this investment in new machinery marks an important milestone for the business in achieving its growth plans.
"We are committed to providing support and guidance to manufacturing businesses, and as part of that commitment, we have set a target to lend an additional £4billion nationally to manufacturing business by the end of 2017."
