Case Study: PMS Diecasting Ltd
Published: January 2008
Rotherham based PMS Diecasting Ltd are one of the region’s most successful metal casting specialists.
Among their products, PMS Diecasting supply components to the automotive industries, gearbox covers for electrical motors, window, door and conservatory fittings and brackets and jointing equipment to more than 50 clients.
PMS Diecasting won a new contract to manufacture die-cast zinc components and needed to step up their production capabilities to meet increasing market demand.
They needed to purchase the technology to produce 27 million wire tensioning and joining components, increasing to 35 million in 2008.
In addition, PMS Diecasting looked to expand their operations later in the year by producing castings for the window fitting industry. However, it needed new equipment to further increase its capacity to secure this new business.
The company secured two loans from South Yorkshire Investment Fund (SYIF) to modernise their production processes.
With a new contract in place, PMS Diecasting used the initial £100,000 loan from SYIF to assist with the purchase of machinery.
Gordon Panter, Managing Director at PMS Diecasting, said: “The SYIF funding enabled us to step up production on a considerable scale. We now have cutting edge machinery producing eight components at a time instead of four which was the maximum on our other machines.
"We also used part of the funding to install vision cameras to ensure that quality inspection is consistently at the highest level. This is a vital requirement when we are running production levels of 65,000 units per day, with total maximum daily output increasing to 200,000 per day."
PMS Diecasting received an additional £50,000 to provide the necessary technology for PMS to enter the window fitting’s market.
Progress to Date
Gordon Panter, Managing Director at PMS Diecasting, said "Alongside the new contracts, our existing clients are continually expanding their requirements, so the next stage for development is looking at doubling our floor space by purchasing additional premises."
Karl Hodson, Investment Director at South Yorkshire Investment Fund, said: "PMS Diecasting Ltd clearly demonstrated not only good management practice, but a viable business plan and the economic need to expand their production capacity to feed the market."
"South Yorkshire Investment Fund exists to help businesses to reach their goals and to thrive in a results driven environment. We are more than happy to help vibrant companies such as PMS Diecasting."
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About South Yorkshire Investment Fund
South Yorkshire Investment Fund provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.
South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.
Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.
For further details please contact Suzanne Tinkler, on 0845 649 0000.
South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).