Droitwich-based Chess Plastics has expanded its Berry Hill site with the purchase of new machinery and a 1.5-acre land parcel which incorporates a 16,000 sq ft property.
The purchase was supported by a £1.2m support package from Lloyds Bank Commercial Banking, as part of a commitment to lend £2.5bn to businesses in the West Midlands.
New hardware includes a 1,000-tonne Borche BU1000 plastic injection moulding machine, valued at £235,000. Featuring software to support optimised processing, the machine can produce parts up to 5kg.
The new Borche moulder uses 40% less energy than the out-going machinery. This will help to reduce the company’s annual carbon footprint by about 128 tonnes of CO2.
The land purchase, which will increase existing facility space by 50%, will be used for storage and distribution. Chess Plastics forecasts the investment will save £100,000/year in storage rental costs.
Asset finance allowed the company to purchase the new machinery and land without affecting cash flow. Chess Plastics is forecasting the investment will increase production output capacity by 6% over 2019, increasing turnover from £9.7m to £10.5m over the next 12 months.
Established in 1968, Chess Plastics produces parts for various companies operating in the automotive, brewing and construction sectors.
Speaking about the new investment, director Gareth Olden said: “Taking on additional space gives us the room to grow and achieve our plans for the future. Working with Lloyds has been instrumental in our recent expansion. The team ensured that everything ran smoothly, and we have complete confidence in Lloyds to deliver to their word - we always feel as though our business is in safe hands.”