A VALLEYS-BASED food packaging venture is focused on ramping up production and potential acquisitions after a new financial investment round boost.
Delyn Packaging has received £275,000 in grant aid from the Welsh Assembly Government and a third-round debt investment of £295,000 from Finance Wales.
Delyn supplies an extensive range of plastic food packaging. The latest investment has enable the company to relocate to a new 53,000 sq ft manufacturing facilities.
Managing director Mike Keenor said: “Over the past three years we’ve have focused relentlessly on quality, customer service and reducing the environmental impact of our packaging.
“This strategy has resulted in a number of new contracts for our fully recyclable rPET food packaging. We’re now supplying an increasing number of the UK’s leading food manufacturers and retailers.”
He added: “The investment has enabled us to accelerate our growth plans through acquisition. We also intend to use the investment to purchase new capital and office equipment to meet the increased demand.”
Rachel Miles, portfolio monitoring manager at Finance Wales said: “Delyn has a solid reputation for quality and innovation in the packaging industry. Added to this, it’s an early adopter of new technologies and materials that aim to reduce the environmental impact of food packaging.
“Finance Wales has previously invested £250,000 in Delyn and this latest investment will support Delyn’s ambitious expansion plans as it increases its blue chip client base further.” |
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The company also has plans to recruit additional staff as demand for its recyclable food packaging continues to grow.
Ieuan Wyn Jones, Minister for the Economy and Transport, congratulated the company on its expansion.
He said: “It’s always good to see Welsh companies expanding and winning new business, particularly under challenging economic conditions and that support from the Welsh Assembly Government and Finance Wales has helped facilitate their expansion plans.
“The company’s green credentials support the Welsh Assembly Government’s strategy to reduce waste and increase recycling targets. It is also helping them secure new contracts and develop a sustainable business.”
Latest figures show that Finance Wales had invested more than £57m from its current £150m Joint European Resources for Micro to Medium Enterprises (Jeremie) Fund.
It consists of a £75m in a commercial loan from the European Investment Bank, £60m of non-repayable funding from the European Regional Development Fund and legacy investments for the previous Finance Wales fund.
Under the fund Finance Wales invested in more than 400 projects covering equity, mezzanine and debt investments
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