Stourbridge manufacturer secures £310k funding package to cut waste and boost efficiency
Stourbridge-based Vanguard Foundry, a leading manufacturer of iron and stainless-steel castings, is investing in new machinery that will increase its production capacity, improve quality and cut down on waste.
The business, which was established in 1983, produces iron and stainless-steel castings for global engine manufacturers.
Following the firm’s acquisition in October 2022 by joint owners Paul Kendrick and Karl Hopkins, the pair have now secured a £310,000 funding package from Lloyds’ Clean Growth Financing Initiative (CGFI) to buy new machinery to turbocharge the production of complex castings.
The new equipment increases production capacity by around 25 per cent, which in turn allows the business to boost overall output by up to 20 per cent. Importantly, it has also delivered a step change in quality, reducing internal scrap rates from five per cent to around three per cent. This has a direct impact on sustainability, as fewer defective castings mean less waste material, lower energy use in remelting, and reduced chemical and landfill waste.
This latest investment builds on more than £1.5 million of improvements made by Vanguard’s leadership team since acquiring the business. Earlier phases focused on upgrading existing machinery, reorganising factory layouts, and improving planning systems. With those foundations in place, the new Lloyds funding marks the next stage of growth, expanding capacity to meet increasing demand from global original equipment manufacturing (OEM) customers.
The machine also supports Vanguard’s long-term digitalisation strategy, complementing its wider adoption of AI. The company is upgrading its ERP system and data infrastructure to provide more predictive, data-driven insights for process optimisation, helping it meet stringent customer expectations.
Paul Kendrick, managing director at Vanguard Foundry, in Bott Lane, Lye, Stourbridge, said: “This investment has been transformational as we continue on our growth journey. It enables us to increase capacity, improve quality, and reduce waste, all of which are critical to meeting the needs of our customers in fast-growing markets like power generation and heavy commercial vehicles.
“The support from Lloyds has been exceptional, not just in securing finance on the right terms, but also in building a banking relationship that feels genuinely responsive and local. This funding allows us to take the next step in modernising Vanguard and positioning the business for long-term sustainable growth.”
Jon Dockerill, relationship manager at Lloyds, added: “Vanguard Foundry has shown real innovation, resilience and ambition under its new leadership. This latest investment in more efficient machinery will help them serve world-class customers while cutting waste and emissions. We’re proud to be supporting the next phase of their growth and their commitment to both innovation and sustainability."
