£750,000 loan helps Midtherm growth
A Dudley-based manufacturer of commercial and domestic flue systems has purchased new machinery with the support of a £750,000 loan from Lloyds Bank Commercial Banking and created six new jobs.
Established in 1970, Midtherm Flue Systems is the only British-owned major producer of flue systems, which it supplies to installers and manufacturers of wood burners and biomass appliances.
The business, which also produces commercial products for boiler and diesel generator exhausts, exports to clients in the Middle East and Asia, and supplied the exhausts and flue systems for the service plant installation at the Burj Dubai development.
Midtherm Flue Systems, located in New Road, identified the need to increase its manufacturing capabilities and speed up its production process in order to remain competitive in the UK and begin new export operations to Europe.
It approached Lloyds Bank for funding, and the team provided the loan to support the purchase of a new flue forming line, which enables the business to roll and weld tubes automatically for its flue systems. Additional funding of £160,000 was granted using the Regional Growth Fund, which supports businesses looking to purchase new assets and create economic growth and local employment opportunities.
Following the purchase of the flue forming line, The business now has the capability to double its production in its existing premises, helping it to compete with products that are imported into the UK from European manufacturers.
To house the machinery the business also extended its factory by 8,000 sq ft and plans to purchase additional machinery in the future to further enhance its production capabilities and reach new markets.
Ray Andrews, managing director of Midtherm, said: "The team at Lloyds Bank has been extremely supportive of our plans to enhance our production levels, and the funding has been instrumental in allowing us to continue to compete in an international market. We now look forward to growing our business as we plan to double our existing market share and pursue an export strategy to Europe."
David Chance, relationship manager at Lloyds Bank Commercial Banking, said: "Midtherm Flue Systems is an established local manufacturing firm and the company's credibility in this highly skilled area of manufacturing is a real catalyst in fuelling its ambitious growth strategy. This investment marks a pivotal moment for the business, enabling it to further increase its production capabilities and the new jobs that have been created as a result are positive news for the local economy.
"As part of our commitment to the manufacturing sector, we work with businesses to help them achieve their ambitions for growth. We set a target at the start of 2014 to lend an additional £4billion to manufacturing businesses over the four years to December 2017."
