East Lancashire manufacturer acquires factory in £2 million deal

East Lancashire manufacturer Metflex Precision Mouldings Ltd is set for a period of sustainable growth after buying its rented premises and factory outright, with support from Yorkshire Bank.

Great Harwood-based Metflex, which produces specialist rubber components, has bought its 37,000 square foot office and factory in a deal worth £2 million with 100% finance support from Yorkshire Bank in Blackburn.

The deal was completed by Vince Bennett, commercial banking relationship manager at Yorkshire Bank’s Business and Private Banking Centre in Blackburn.

The premises on Alan Ramsbottom Way were purpose-built for Metflex in 2010 by a joint venture between Barnfield Construction and Hyndburn Borough Council. The manufacturer moved in as a rent-paying occupier but, after a period of growth, has decided to buy the property outright.

Metflex employs around 80 people, rising to 110 with temporary staff during seasonal peaks. Around 70% of its revenues are generated from overseas sales.

Dermot McCarthy, Metflex financial director, said buying their premises, which includes offices and production areas, will provide the company with the security and stability to pursue sustainable growth opportunities.

Dermot McCarthy said: “Most people want the security of owning their own home, and businesses are no different. We’ve enjoyed our new home since we relocated in 2010 and felt that, following a strong period for our business, we wanted to invest in our bricks and mortar to provide us with a solid foundation from which to grow further. We also felt it important to commit the business to the East Lancashire community which is known across the world for its specialist manufacturing credentials.

“We are looking to invest in our staff, possibly increasing the number of people we employ here, as well as machinery and equipment so that we can continue to develop our products and meet growing global demand.

“We have had a relationship with Yorkshire Bank for more than 20 years and we would like to thank the team for its continued support. They have worked hard to understand our business and fully supported us in our bid to buy our new home.”

Ian Hardman, head of Yorkshire Bank’s Business and Private Banking Centre in Preston, said: “Having withstood the various global economic challenges in recent years, Metflex continues to go from strength to strength and we’re delighted they’ve taken advantage of one of the new initiatives we launched earlier this year.

“As we continue to see signs of economic growth in East Lancashire, we are committed to working with strong, growing businesses such as Metflex who are investing in growth opportunities in their businesses”