Derbyshire-Based Avanti Secures HSBC RGF Support
LONDON, UNITED KINGDOM--(Marketwire - Dec 5, 2012) - Derbyshire-based Avanti Conveyors is broadening its manufacturing capabilities and planning expansion into new international markets after securing funding under HSBC''s Assisted Asset Purchase Scheme. The scheme is part of the Government''s Regional Growth Fund (RGF) designed to support small-to-medium-sized enterprises (SMEs) grow their business.
The High Peak-based company designs, manufactures and installs corrugated box conveyor systems. The £100,000 equipment finance funding from HSBC Commercial Bank, in addition to a 20% grant from the RGF, will enable the company to purchase equipment to bring the fabrication element of its manufacturing process in-house, creating two new jobs.
Avanti exports 80% of the 200 conveyor units its produces a year to markets including Europe, South Africa, Australia and the Middle East, and clients include the likes of IKEA. The cost savings it will achieve through the new fabrication facility will enable it to target Asia and further growth in the Middle East in the New Year, with the company planning to appoint agents in these territories in the first quarter of 2013.
Avanti is a family-owned business, established by current Managing Director Simon Mander''s father, Keith, in 1988. After a spell under American ownership, the company changed its name to Avanti in 1999 and began manufacturing its own units four years ago, taking advantage of the economic downturn to lower costs and improve quality and control. The business now employs 25 full-time employees and 12 sub-contractors and plans to move to new purpose built premises in the next three to four years to assist further growth.
Avanti has moved its full business banking to HSBC''s Derbyshire Commercial team in a deal led by Commercial Manager Seeta Parmar. Due to its international exposure and the fact that it gets paid in multiple currencies, Simon Mander was seeking a banking partner that could cater for the company''s complex finance requirements, but could also introduce contacts in international markets.
He said: "Having an individual on the ground in the countries we are currently trading with, and want to trade with, helps us greatly. It not only opens doors for our business, it also helps us avoid any potential pitfalls, both business-wise and culturally, that we may not have been aware of. HSBC has the international capabilities we were looking for and we are pleased to have switched to the bank."
He added: "This is an exciting time for Avanti; we saw the recession as an opportunity for us and bringing manufacturing in-house has brought many benefits. This next step will result in Avanti making more of the parts of our units ourselves, which will lower our costs and give us the room to target these new international markets."
HSBC Derbyshire Commercial Manager Seeta Parmar added: "Avanti has been working hard to develop the business over the past few years and they are now one of the market leaders in this field, supplying customers around the world. Asia and the Middle East are big growth markets and should bring additional benefits to the company, and indeed the local economy."
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HSBC Bank plc: HSBC serves 16.1 million customers in the UK and employs approximately 50,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,900 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. With assets of US$2,652bn at 30 June 2012, the HSBC Group is one of the world''s largest banking and financial services organisations.
