Naylor Industries, whose products include pipes and drainage products, has secured a £5m funding package from HSBC UK to support the business through Covid-19 trading conditions and fund growth initiatives.
Naylor Industries furloughed more than half its employees at the start of the pandemic as its traditional construction markets fell away. However, its cable filler and ventilation duct teams remained busy supplying healthcare-related projects across the UK, including the NHS Nightingale hospitals.
Despite disruption, Naylor has secured £3m of asset finance from HSBC UK to support capital investment projects. This funding will increase capacity and productivity in two of its businesses.
It is investing £2m in machinery at its Barugh Green concrete lintel factory to address a capacity constraint and £1m at its bespoke extrusions business. New equipment at the latter will increase running speeds by up to 40% and increase production of the business’s ventilation duct products. This project is also being supported by a Leeds City Region local enterprise partnership (LEP) business productivity grant of £100,000.
In addition, HSBC UK has provided a £2m overdraft facility to support working capital requirements during the business’s expansion as well as cover for any eventualities related to Covid-19.
Naylor chief executive Edward Naylor said: “At times like this, we’re pleased to have a broad portfolio of activities included in the business. Whilst there is still considerable uncertainty in our core construction markets, we see opportunities for growth in our other markets and are grateful to HSBC UK for supporting our development plans”.
Andy Richardson, relationship director for HSBC UK Corporate Banking, added: “Naylor Industries has a long heritage in South Yorkshire, servicing a vast, international customer-base for many years. We’re delighted to be supporting the business through these unprecedented market conditions and welcome the company’s decision to continue investing for future growth.”
Naylor Industries is a fourth generation family manufacturing business with an annual turnover of £55m. It employs 400 people across five manufacturing sites: three in the Barnsley area, one in Fife and one in the Midlands. It makes clay and plastic pipes and concrete products. Most recently, the company has developed a bespoke products division, Naylor Specialist Plastics, which manufactures tubes and profiles for a variety of applications and industries.