Specialist masterbatch manufacturer, Wells Plastics, has received received a £1.5 million follow-on investment from private equity house Key Capital Partners and current shareholders.
The Staffordshire-based firm says it will use the additional funding to invest in new machinery to increase production capacity and offer more flexible production. Following the funding, the business is planning to increase output by around 25 percent to support its growth plans.
‘Reverte’, Wells Plastics’ line of oxo-biodegradable and degradable additive masterbatches and compounds, is said to be one factor driving the increase in demand. After recent contract wins with a number of blue chip companies, sales volumes of Reverte are said to have increased 20 percent over the past twelve months alone.
Key Capital Partners made its initial investment in Wells Plastics in February 2011, alongside senior debt facilities from longtime banking partner, NatWest.
Chief Executive of Wells Plastics, Dr. Neil Partlett, said: “The follow-on funding is great news for the development of Wells Plastics. It will help us develop the production facilities we need to support the future growth plans of the business.
Mark Buttler, Director at Key Capital Partners, said: “Despite the difficult conditions in the manufacturing sector, Wells Plastics has maintained a strong position. We remain on the lookout for opportunities to expand and continue pushing into new markets.”
Wells Plastics employs over 40 people at its manufacturing site in Stone and has a reported turnover of £10m.