Avanti Conveyors is broadening its manufacturing capabilities and expanding into new international markets with backing from HSBC.
The Derbyshire company makes corrugated box conveyor systems and is using £100,000 equipment finance funding from HSBC Commercial Bank, together with a 20 per cent Regional Growth Fund grant, to bring fabrication work in house, creating two new jobs.
Avanti is a family-owned business, established by current managing director Simon Mander’s father, Keith, in 1988.
The company changed its name to Avanti in 1999, following a spell under American ownership, and began manufacturing its own units four years ago, taking advantage of the economic downturn to lower costs and improve quality and control.
Avanti makes around 200 conveyor units a year and exports 80 per cent of its production to Europe, South Africa, Australia and the Middle East.
The cost savings resulting from setting up its own fabrication facility will allow the company, whose customers include Ikea, to target Asia and further growth in the Middle East.
Avanti’s Simon Mander said HSBC’s presence in the firm’s existing and potential export markets would help the firm greatly, opening doors to business and helping the firm to avoid potential business and cultural pitfalls.
“HSBC has the international capabilities we were looking for and we are pleased to have switched to the bank,” said Mr Mander.
“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.”