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Firm’s extension boost is fantastic for plastic
ONE of the largest producers of plastic bottles in the UK is set for further growth after completing a new extension at its Worcestershire site.
Esterform Packaging of Tenbury Wells, which was established in 1999, supplies pre-formed and moulded polyethylene terephthalate bottles to the beverage and household sectors.
The £65 million turnover business has two factories in Tenbury and Leeds, employing 260 people.
It manufactures 1.5 billion pre-forms and 720 million bottles annually.
Recently, the company has seen demand for PET plastic bottles increase from the food sector, as rising legislation means supermarkets have to decrease CO2 emissions.
Using plastic containers instead of glass jars achieves this as they are lighter, therefore allowing a vehicle to transport an increased volume per journey.
To capitalise on this development, Esterform approached Lloyds TSB Commercial Finance, its funding partner since 2007, for a cashflow boost.
The bank provided a £6 million asset-based lending facility, leveraged against the firm’s inventory, plant, machinery and property. This has enabled the business to extend its factory in Tenbury in order to increase its production.
Simon Hartley, financial director at Esterform Packaging, said: “The environmental agenda is changing how foodstuffs are packaged and we have been working closely with major supermarkets to develop suitable PET alternatives to bulky items such as glass jars.
In order to manufacture these products, we had to expand our facilities and purchase new machinery. By working closely with Adrian Mason, our client manager at Lloyds TSB Commercial Finance, we were able to access further capital.”
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