ADS Laser Cutting, of South Wigston, Leicestershire, receives £1m funding, including Govt cash
An engineering firm has secured just under £1 million of funding to fuel an expansion push which will create jobs.
ADS Laser Cutting, of South Wigston, has received a £850,000 finance package from HSBC and another £130,000 in the form of a Government grant.
Part of the money will be used to buy a new hi-tech laser cutting machine.
The Government money has come from the Regional Growth Fund (RGF), a scheme which has been criticised by some politicians who felt Leicestershire firms had not benefited enough from it.
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Mr Keates said it was easier than he expected to apply and said it took less than three months for a decision to be made. He said the cash would enable the company to increase its 27-strong workforce.
"This investment moves our business on to the next level and will enable us to speak to a far greater range of potential clients," said Mr Keates.
"Growth means taking on new employees, trying to get into new markets and additional materials."
The new Trumpf laser cutting machine will mean the company can target sales in new sectors, such as the electronic, automotive and aerospace industries.
The HSBC package also includes a scheme to allocate money against customer invoices to support the company's cashflow.
ADS was founded in 2005 by brothers Duncan and Stephen Keates in Frog Island, Leicester. The company now has a 22,000sq ft factory in Radnor Road, South Wigston and reported a turnover of more than £2 million last year, a rise of 25 per cent.
Paul Turk, HSBC Leicestershire area commercial director, said: "While some businesses operating in this sector have experienced challenges in achieving growth through the recession, ADS has continued to thrive, demonstrating that a forward-thinking, proactive approach can overcome barriers presented by market conditions."
Last week, Labour's Leicester South MP Jon Ashworth said the multi-billion-pound RGF, created by the coalition Government, had so far allocated a disproportionately low amount to East Midlands manufacturers. He was speaking during a Parliamentary debate on the state of manufacturing in the region.
However, Andrew Bridgen, Tory MP for North West Leicestershire, said a number of manufacturers in his constituency had benefited.