ONE of the UK’s largest lighting manufacturers has expanded its production facilities in Basingstoke to meet an increase in demand for LEDs.
Luxonic Lighting, which makes light fittings and employs around 100 people, recently completed the 10-month project, costing around £750,000, by consolidating its manufacturing on to one site at its Priestley Road headquarters.
Managing director Nick Tavaré said the work required extensive re-organisation of the factory, where two mezzanine assembly areas have been installed increasing the production area by 30 per cent. The investment also included new automated equipment.
Mr Tavaré said: “Last year was a fantastic year for us in term of sales and we have seen huge increases in demand for our LED products.
“As a result, our existing manufacturing and operational facilities proved inadequate to deal with the surge in volume and we took the decision to invest in new equipment and to make improvements to our factory.
“For some time now, we’ve wanted to bring everything back under one roof to our Trillium House manufacturing site in Basingstoke to ensure that we provide our clients with the best service possible.
“We have built two mezzanine floors in our existing factory which will provide additional workspace and storage, together with installing a new paint plant and other site improvements.”
Mr Tavaré said the project was a success, partly thanks to a financing plan that Luxonic has agreed with RBS.
The new development was financed with the assistance of a loan facility from the bank which was structured by RBS relationship director Phil Opie, who is based in Basingstoke.
RBS has refinanced Luxonic’s existing loan and provided the company with an additional £250,000 funding under the banks ‘Funding for Lending Scheme’ (FLS) – a Government-backed scheme designed to provide SMEs with more accessible and affordable funding.
Matt Coburn, relationship manager at RBS Invoice Finance, collaborated on this deal with Mr Opie to provide additional working capital funds of £2.65million to support Luxonic in a recent significant contract deal with a major supermarket chain.
Mr Opie said: “Having worked with Luxonic Lighting for many years, we have developed a great relationship with the company and its directors.
“The business has gone from strength to strength, and we fully understood the pressures their period of growth put on the company and its production capabilities.”