Manchester-based coatings manufacturer HMG Paints plans to create 50 jobs and develop a new facility, having received a slice of the £1.4 billion Regional Growth Fund (RGF).
The £1.2 million of government funding will help finance a proposed 10,000 square feet extension for the production of high performance waterborne coatings.
The new building will double production capacity at HMG’s Collyhurst site, safeguard the employment of almost 150 existing full-time staff and lead to the creation of 50 new jobs within the next five years, says HMG Paints.
“This means we can put in place our plans for a technically sophisticated and dedicated waterborne coatings production department, which will be among the best in the industry,” said managing director John Falder. It seems that our bid must have satisfied the assessment criteria with regard to sustainable economic activity, as well as the creation and safeguarding of employment at this site.
“We have an outstanding relationship with our local communities and initiatives like this mean we can continue supporting the local economy and labour pool.”
HMG has developed a wide-range of water-based paint systems, for industrial finishing and refinishing applications in the commercial vehicle, bus and coach, rail industry and general engineering sectors.
The growth in demand of these products, with their several safety and performance benefits, has resulted in HMG’s current production facilities struggling to keep place – which means the management team have welcomed the news of extra money.
The British Coatings Federation alerted John Falder and his colleagues to the second round of bidding, they then attended the RGF road show where Michael Heseltine delivered the keynote address.
Last week Mr Falder was invited to breakfast with Deputy Prime Minister Nick Clegg, at an event where the £950 million second round tranches of the Regional Growth Fund wqas announced.
HMG Paints’ finance team, together with chartered accountants UHY Hacker Young, is now involved in the confirmatory due diligence phase of the RGF payment.