A NORTH East manufacturing business has become the first recipient in the region of a new bank grant scheme backed by the Regional Growth Fund.
Calberto Ltd, a high precision machinist business, manufacturing bespoke components using the latest technology, received more than £250,000 funding from HSBC’s Commercial Banking team in the North East, in a deal led by commercial manager Lucy Wilding.
The funding, which will allow the business to purchase new machinery and expand its production capabilities, includes equipment finance and a Regional Growth Fund grant of £32,000 – making Calberto Ltd the first business in the North to have received such a grant from HSBC.
The Government’s Assisted Asset Purchase Scheme, which is run by HSBC and RBS, is deigned to for businesses which have bank support for capital investment but which do not have the deposit they require to go ahead with the deal.
Pat Dellow, area commercial director at HSBC Commercial Banking Tyne and Wear, said the scheme was proving “extremely popular”.
“This is designed for those businesses which we are keen to support but the only thing missing is the customer stake,” she said, adding that other similar deals were expected to be completed in the coming weeks.
“While the manufacturing sector has experienced challenges over the past few years, there are clear indications that the tide is starting to turn with the latest CBI industrial trends survey revealing a rise in orders and an increase in output of 5% compared to the last quarter,” she said.
“Calberto Ltd is a brilliant example of a manufacturing business that has taken a forward-looking approach, thinking about what opportunities there are for growth and ensuring it prepared to take advantage of them.”
The business based in Washington, Tyne and Wear, supplies many of the region’s most successful manufacturers as well as exporting products across Europe.
The business will use its finance package to purchase new machinery, allowing it to build on the high quality CNC (computer numerically controlled) machines it already owns, to deliver precision engineering to meet customer demands.
Calberto Ltd will also build its workforce this year, adding to its 50-strong team with the appointment of three new apprentices to ensure it has the skills it needs to compete now, and in the future.
Norman Grievson, managing director at Calberto Ltd, said: “Moving our banking to HSBC represents an exciting development for the business.
“We will achieve so much through the funding, from purchasing additional machinery to safeguarding and increasing local jobs. We see this as a first step and hope to continue to invest over the coming years, enabling us to look forward to a prosperous future. As a business, we pride ourselves in high quality production and this funding will really help to drive new business and serve our existing customers even more effectively.”
Established in 1983, Calberto Ltd has a turnover of £2.5m. The business has an impressive client base and supplies a diverse range of industries including hydraulics, power generation, sub-sea and oil and gas.