British Polythene Industries has negotiated new credit agreements with four banks to give it renewed acquisition and investment powers.
The international plastics manufacturer has increased its banking facilities to a total of £85m, including overdrafts, £10m more than it previously had available.
The new banking facilities will be used to power acquisitions as well as a wide range of capital investments at its site across the UK and abroad.
Following the firm’s AGM in Scotland, BPI committed to spend £20m a year in refreshing and expanding its manufacturing and recycling equipment.
This promise builds on other recent investments in new extrusion lines at its Ardeer, Scotland site.
BPI employs 2,200 people internationally and supplies the agricultural and construction sectors.
Its new banking facilities have been agreed on a five-year revolving credit basis extending to 2019.
While wet weather has delayed demand from the agricultural sector this year BPI’s chairman Cameron McLatchie says he expects “satisfactory performance in 2014”.
Questioned on the implications of Scottish independence on BPI MR McLatchie recently told The Herald “It would certainly have implications for us, but until we see the exact nature this will take we are well placed to cope with whatever happens to the business. It would give us complications on currency, pensions, there are a number of issues, but at the end of the day we have a lot more factories in England and abroad than we do in Scotland.”
