Leicester-based engineering polymer firm Nylacast is to open a new production facility in China following a £12 million (US$17.21 million) funding deal from Santander Corp. & Commercial.
Nylacast supplies high performance engineering polymers and finished components to the oil and gas, offshore, food, packaging, pharmaceutical, construction and mining sectors in the UK and globally.
The business, which has an annual turnover of £29 million, is headquartered in Leicester, UK, with further manufacturing facilities in South Africa and the US. Nylacast has built up a strong list of clients, including BP and Shell.
The factory in China follows strong customer demand from automotive clients. The funding from Santander will enable the business to open a new site in Changshu, which will go live in early 2016. This factory has already enabled Nylacast to secure new contracts and, with the Chinese passenger car market forecast to grow at 7% per annum and by 2020 will have a global market share of 25%, Nylacast will be well positioned to benefit from strong growth in the Chinese market. The factory will also enable the firm to expand into other sectors such as oil and gas, pharmaceuticals, construction and mining in the key Chinese market.
The new factory will create over 60 new jobs in the first year in China with further significant growth expected by 2020. In the UK, Nylacast expanded by 30 people in 2015, with another 30 jobs expected to be created in the firm’s domestic market as it increases its capabilities and expands into new sectors.
Mussa Mahomed, chief executive, Nylacast said: “Santander has a niche understanding of the manufacturing sector which provided us with an affinity and understanding about how to drive the business forward. The new factory in China creates a route to market whereby we can cater for our increasing demand as well as anticipate opportunities in other sectors.”