A West Yorkshire manufacturer has invested £500,000 to expand its factory and is creating new jobs thanks to growing demand for its products from the oil and gas sector in Scandinavia, with support from Lloyds Bank.
Hystat Systems, which specialises in manufacturing hydraulic cylinders and piston accumulators used primarily in the oil and gas and industrial sectors, is based in Slaithwaite in Kirklees, West Yorkshire.
The expansion gives Hystat around 800 sq m more space, increasing its manufacturing and assembly areas by a third.
The investment, which is supported by Lloyds Bank Commercial Finance, will also create eight new fitting and assembly jobs.
Around 60 per cent of Hystat’s products are exported and its growth in recent years has largely been driven by the expanding oil and gas sector in Scandinavia, and Norway in particular.
Director Simon Wadsworth said: “This extra space sets us up for the long-term future in Slaithwaite.
“It will give us more capacity, which will allow us to take advantage of the growing market and bid to win more business from rivals.
“It also means that we can do more work in-house which we would have previously had to subcontract to a third party, which will help boost our margins.
“Working with Lloyds has helped us manage our cashflow while investing to take advantage of growth opportunities as they emerge.”
Founded in 1976, the business has 105 staff and saw revenues leap by more than a fifth last year as turnover grew from £8m in 2013 to £11m in 2014.
The investment in growth has been supported by a £300,000 manufacturing expansion loan.
Chris Perkins, relationship director, manufacturing, Lloyds Bank Commercial Banking, said: “Manufacturing is integral to the country’s growth objectives and Lloyds has committed an additional £1bn of new lending for manufacturers every year until 2017 to drive growth in the sector.
“Our understanding of manufacturing and our trained managers can provide guidance to help find the most appropriate plan.
“It is fantastic to be able to support Hystat’s ongoing expansion plans.”
A £1.75m invoice discounting facility, arranged by Graham Irons and Rob Kelly at Lloyds Bank Commercial Finance also supports Hystat’s working capital requirements.