A car parts company has secured £6million to help it expand after it landed a contract with a European motor manufacturer.
Welshpool-based Castalum says it expects to increase its turnover by 50 per cent to about £40million after its contract win – an expansion which will also see the company ‘significantly increase’ its current staff numbers.
Now it has tied up the £6million in funding with banking giant HSBC, which will allow the growth to happen.
Castalum managing director Keith Brown said: “We have clear plans to grow the business and believe this new contract will be the first of many.
“We operate from purpose-built facilities, with state-of-the-art automation and lean strategy throughout the organisation. This means we can offer our customers a quality product at a competitive price.
“This new HSBC funding package gives us the capacity to support our growth plans, creating new jobs in the Welsh automotive industry.”
The firm, an aluminium diecaster, supplies car and truck components to the UK, Germany, Poland, Italy, Canada, Mexico and the Far East.
Nearly 75 per cent of production is for export, with components going to vehicle lines produced by Aston Martin, BMW, Volkswagen Audi Group, Ford, Volvo, Mazda, General Motors, Fiat, Renault, Porsche and Mercedes.
The firm has also extended several existing contracts as it gears up for growth, leading to additional shifts at its Buttington Cross Enterprise Park headquarters, and new staff starting.