Member Article

£500k investment to boost County Durham plastics firm

A Newton Aycliffe plastic injection moulding company is investing £500k to expand the business, following a year of growth.

Formula Plastics is purchasing two fully-automated large scale injection moulding machines to enable the keep the company to increase output and stay competitive.

As well as increasing the overall capacity of the factory, the new kit will increase the range and type of products that the firm can manufacture.

When installed in September the new machines will begin production on new contracts, including manufacturing moulded parts for the Nissan Leaf.

The investment package includes a grant of £94,500 from the Let’s Grow Fund, which is operated by business services company BE Group and Newcastle accountancy firm UNW LLP.

The new machinery is the first phase of the company’s ambitious three year growth plan, which will almost double turnover and create at least seven new jobs at the factory.

James Goodliffe, managing director, said: “With this investment we can add another dimension to the service we can offer customers.

“Let’s Grow funding has been an essential part of the project; without it, the project simply would not have gone ahead. It has enabled us to invest in the most modern plant and equipment and ensure that we remain competitive for years to come.”

Andrew Frost, Let’s Grow project advisor at BE Group said: “We’re very pleased to be supporting Formula Plastics to invest in new additional plant and equipment. The Let’s Grow grant is helping to de-risk what is a significant investment of over £500,000 and is fundamental to the company’s decision to continue to expand its operations in the automotive supply chain.”

The development will further boost health, safety and environmental standards. The machines will use 50% less energy than standard equipment.

The company recently obtained the environmental management certificate ISO14001 and is working toward the global automotive standard, ISO/TS16949.

James Goodliffe added: “There has been an increase in demand for moulded products both regionally and nationally, and Formula is positioning itself as a strong contender to take on additional business both within and outside the automotive sector.

“We have always had a reputation for quality, and now we have internationally recognised accreditation as well as our new machinery, we’re able to deliver even more products to this high standard.”

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