The company won a new contract to manufacture die-cast zinc components and needed to step up their production capabilities to meet increasing market demand.
With the new contract in place, the metal casting specialist used the initial £100,000 loan from SYIF in July 2006 to purchase the machinery required to produce 27 million wire tensioning and joining components, increasing to 35 million in 2008.
PMS Diecasting received an additional £50,000 in September 2007 as the company looked to expand their operations. The loan was used to provide the necessary technology for PMS to produce castings for the window fitting’s market.
Gordon Panter, managing director at PMS Diecasting, said: ‘The SYIF funding has enabled us to step up production on a considerable scale. We now have cutting edge machinery producing eight components at a time instead of four, which was the maximum on our other machines.
‘We also used part of the funding to install vision cameras to ensure that quality inspection is consistently at the highest level. This is a vital requirement when we are running production levels of 65,000 units per day, with total maximum daily output increasing to 200,000 per day.
‘The additional investment has continued this expansion of the company into the window market and provided further capacity to secure new business.
‘Alongside the new contracts, our existing clients are continually expanding their requirements, so the next stage for development is looking at doubling our floor space by purchasing additional premises.’
Among their products, PMS Diecasting supply components to the automotive industries, gearbox covers for electrical motors, door and conservatory fittings and brackets and jointing equipment to more than 50 clients.
Karl Hodson, investment director at South Yorkshire Investment Fund, said: ‘PMS Diecasting clearly demonstrated not only good management practice, but a viable business plan and the economic need to expand their production capacity to feed the market.
‘South Yorkshire Investment Fund exists to help businesses to reach their goals and to thrive in a results driven environment. We are more than happy to help vibrant companies such as PMS Diecasting.’
PMS Diecasting was introduced to the services of SYIF by Business Link South Yorkshire.
South Yorkshire Investment Fund can provide seedcorn, loan and equity linked investments, ranging from £15,000 to £2.5m to help small and medium businesses meet the gaps in funding they need for growth and development.