Fund’s first payout helps growing firm
A PLASTICS specialist in Caerphilly is set to relocate to a larger unit in Ebbw Vale, creating around 40 jobs, following a £1.7m investment from the Cardiff Capital Region’s (CCR) new £50m fund.
Pulse Plastics Limited is the first business to secure funding from the CCR’s Strategic Premises Fund (SPF) since its launch in January. The company will move to a 38,000sq ft industrial unit on the Rassau Industrial Estate in Ebbw Vale as it looks to drive the next stage of its growth.
The investment aims to anchor the fast-growing business in its home region, in the face of stiff competition from locations in south-east England.
Pulse Plastics’ managing director Matt Southall said: “Pulse has been championing green solutions in the plastics sector for 25 years and the move to this fantastic site will ensure we continue for the next 25 years – helping clients such as Tata, ArcelorMittal and Vernacare address the serious impact of the Plastics Virgin Tax, and preventing materials going to landfill and incineration.
“Our site in Abercarn served us well, enabling us to become a leader in recovering, reprocessing and reusing plastics, manufacturing a wide range of products for different industries – and our new home on the Rassau Industrial Estate is the perfect place to grow further and radically transform our business ratios.
“We will be futureproofing the business with further significant investment in renewable energy on the five-acre site, bringing the potential for a substantial rise in production and reprocessing levels, and significant job generation, with 20 roles secured or created immediately.”
The SPF, from the £1.3bn City Deal for the region made up of the 10 local authorities of south-east Wales, was launched to support regeneration, job creation and the acceleration of employment land schemes.
It is managed by CBRE’s investment advisory team, part of CBRE Capital Advisors, which manages other development funds across the UK, including the North West Evergreen Fund, the South Yorkshire Pension Fund and Northern Ireland Investment Fund.
Funding will range from £2m to £15m with repayment terms of three years. As loans are repaid money will be reinvested into new projects: the aim is to make the fund evergreen.
Blaenau Gwent Council leader Stephen Thomas said: “We enjoy a close and productive working relationship with CCR and thoroughly endorse the SPF investment in a key employer within the region – a local success story returning to Blaenau Gwent and quite rightly earning plaudits for pioneering work in helping create a more sustainable world.”
Rob O’Dwyer, head of infrastructure for CCR, says: “This loan is a perfect example of what the SPF is for - supporting delivery of employment space, facilities and premises, to maximise opportunities for growing businesses.
“I’m sure it’s the first of many SPF investments that will help drive indigenous growth, attract inward investment and strengthen confidence in our key sectors.”
George Richards, CBRE senior director investment advisory, who manages the SPF on behalf of CCR, said: “This is an excellent, ground-breaking investment.
“The SPF is geared to increasing and accelerating private-sector-led development and site-specific infrastructure, and we are keen to build on this success.”