Muntons could expand Stowmarket headquarters after £73m HSBC asset based lend
Malt producer Muntons could expand its Stowmarket headquarters after arranging a £73million asset-based lend.
The family-owned business, based at Cedars Maltings, announced last week they had secured a deal with HSBC.
A statement revealed Muntons will use the money to invest in ‘capital projects’, but did not say how much Stowmarket will see.
Andy Simpson, finance director, said: “This is an exciting time and we’re delighted HSBC has supported our expansion plans.
“We purchase more than 250,000 tonnes of barley every year and our new plans to increase our manufacturing capabilities mark the start of a fantastic new chapter for us.”
Asset-based lending is most commonly used for fast-growing businesses.
Muntons, who also have a plant in Yorkshire town Bridlington, has seen a rising demand for malt.
Their 250 UK staff could grow as part of the agreement. Muntons also employ 70 staff at bases in the US, Singapore and Holland.
The Stowmarket plant, which produces liquid malt extraction, is set to expand under plans with ‘a small number of new roles’ being created in the next five years.
Ivor McTighe, of HSBC, said: “Muntons is a business investing for the future.
“It exports worldwide and our committed lend facility will enable them to explore additional opportunities for growth outside of Europe.”
Jason Smithers, HSBC area director, added: “The facility offers Muntons improved liquidity, financial stability and a more predictable cash flow. This enables the business to set its sights on a larger-scale expansion.
“We can’t wait to see what the next five years and beyond will bring for this dynamic and fast-growing company.”
More by this authorNewsdesk Bury