Tool manufacturer targets growth with Lloyds Bank help
A Rowley Regis-based tool manufacturer has increased its capacity and is creating four new jobs after investing in new machinery, thanks to a £300,000 funding package from Lloyds Bank Commercial Banking.
Cube Precision Engineering has been manufacturing and supplying specialist tool products for the automotive, aerospace, defence and commercial sectors for more than 10 years. Its clients include Jaguar Land Rover and Honda.
The business has seen a 15% increase in demand from customers in the UK over the past 12 months. To meet this, it secured a £300,000 asset finance facility to support the purchase of a new machine helping to boost its capacity by 12%. The funding package forms part of Lloyds Bank’s pledge to lend £2.5bn to Midlands businesses this year.
The new machine, which uses computerised controls and a rotating multi-axis head, will replace the business’ previous machinery. It will enable the firm to produce a range of more complex and custom-designed products for its clients.
The investment is expected to help build on the business’ £5m annual turnover in the next two years. The firm is also planning to recruit four new members of staff, adding to its 42-strong team by the end of this year.
Neil Clifton, Managing Director at Cube Precision Engineering, said: “Due to the high volume of work, our existing machines were in need of an upgrade. This new machine will help make sure that we maintain a high standard of service for our customers.
“We’ve been with Lloyds Bank for over 10 years and the teams’ manufacturing expertise and strong understanding of our business has been invaluable. Lloyds Bank understands our ambitions and why it’s important for us to continue investing and we look forward to working together for many years to come.”
Mark Meakin, Relationship Manager at Lloyds Bank Commercial Banking, said: “The Midlands has always been the beating heart of the UK’s manufacturing industry and accounts for a fifth of the region’s economy. Cube Precision Engineering’s success and continued focus on investment demonstrates its ambition for the future and sets the bar for other manufacturers in the West Midlands.
“As part of our commitment to helping Britain prosper, we’ll be standing by the side of local businesses like Cube Precision Engineering throughout the remainder of 2019 and beyond to ensure that manufacturing continues to be on the map in the Midlands.”