Cash injection for plastics company

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A Sheffield blow moulded plastics business has invested £250,000 in new equipment to increase its product range and increase sales by 10 per cent.

Caledonian Plastics, based on the Holbrook Industrial Estate, specialises in blow and injection moulding of plastic products. A new extrusion blow moulding machine will enable the business to produce larger products, widening its potential customer base. The aim is to hit £2m-a-year sales.

The company has secured a £250,000 equipment finance funding package from HSBC’s South Yorkshire Commercial Centre.

Formed in 1966, today it employs 28 people and plans to hire three more following the investment.

Major clients include a Sheffield surgical and medical equipment manufacturer and a company that makes alarm panel covers. It sells across the UK and Europe.

Managing director John Laing said: “We are a specialist business and work closely with clients to make bespoke products, so expanding our range of services will help drive the business. We are seeing confidence increase and orders grow, so it’s a positive time.”

HSBC South Yorkshire area commercial director Mick Knowles said: “Caledonian Plastics has a long standing relationship with HSBC, going back more than 30 years, so we are pleased to have supported this latest investment.

“Business confidence across Sheffield and wider South Yorkshire is improving at the moment and we are certainly seeing investment appetite rising across the region.”

HSBC says it has seen a new climate of confidence in UK businesses and has £6bn for lending nationally, with some £500m for SMEs in Yorkshire and the Humber.