One of the world’s most renowned carpet manufacturers has launched a sustainable waste water treatment plant to improve productivity, after securing an £825,000 asset finance package from Lloyds TSB Commercial Finance.
Devon-headquartered Axminster Carpets, which was established in 1937, is now a £30 million turnover business that employs 525 people.
It supplies woven and tufted carpets to the residential consumer and contract markets as well as railway companies and international airlines such as easyJet and Saudi Airlines.
The company has a spinning mill at Buckfast in Devon, where the waste water treatment plant is located, and a tufting plant in Newbridge, Ireland.
Axminster Carpets has been using asset finance facilities from Lloyds TSB Commercial Finance for three years to invest in new machinery, which has enabled the firm to win contracts with major airlines.
Now, as a result of the next stage of funding, it has unveiled a new, environmentally-friendly water treatment plant that will enhance efficiency by streamlining the yarn manufacturing process which is integral to the company’s carpet production. It also removes contaminants formed during the washing and dyeing process, so that sterile water can be recycled.
Tony Biggs, Finance Director at Axminster Carpets, commented: “The launch of the treatment plant is a considerable achievement for us in terms of both our growth strategy and environmental considerations, and it will not only enable us to operate more efficiently, but also sustain higher volumes going forward.
“Paying cash outright for the plant would have significantly reduced our working capital and slowed down our plans to grow but Lloyds TSB Commercial Finance arranged a comfortable payment plan to ease our cash flow by contributing regular, manageable payments.”
Mike Greaves, Area Director at Lloyds TSB Commercial Finance, commented: “Businesses are becoming increasingly focused on their green credentials and it is great to see a company that, despite the wider market conditions, is still placing emphasis on sustainability.
“Not only is the plant eco friendly, but it will also save the firm a substantial amount of money each year on waste water costs incurred from disposing of effluent. Recycling the water also ensures a consistent water quality that previously would have been affected by flooding or droughts.
“We have considerable experience in providing asset finance to companies in many sectors to enable them to obtain funding for the purchase of assets they need to run and grow their businesses successfully.”
Axminster Carpets was introduced to Commercial Finance by Lloyds TSB Corporate Markets, which it has been banking with for over three years.
Neil Johnson, relationship director of Lloyds TSB Corporate Markets, added: “This was a complex transaction but, by working together with our colleagues at Lloyds TSB Commercial Finance, we were able to provide a tailored solution to suit the business’ exact requirements.”
November 2009