Chevler receives further backing from Development Bank of Wales
Chevler, the UK's leading manufacturer of baking cases, tulip muffin wraps and a major printer of greaseproof paper has secured a six-figure funding package from the Development Bank of Wales.
The loan is the fifth investment in the Hengoed based company in South Wales since its first investment back in 2009 which funded a buy out by the current management team. Since then the company’s turnover has more than doubled. The recent investment will enable Chevler to build on its record sales last year and fund its expansion programme.
Chevler Finance Director David Anthony said: "The money will be used to help buy new equipment in our recently refurbished unit allowing the company to meet the demands posed by a changing, challenging and competitive market place.
"These new funds will enable us to invest in new baking cup machinery and launch a range of exciting new shapes and designs that the market is waiting for. The backing we have received from The Development Bank of Wales has been vital in helping us build our product range and move into new markets.
"The latest round of money will help us further develop a range of new wraps and cups for large scale muffin manufacturers which we are particularly excited about."
Chevler, currently employing 90 people at its factories in Hengoed, is renowned for producing innovative products, a fact recognised by Development Bank Portfolio Executive, Steve Elias. He said: "We have backed Chevler since the management buy out nearly 10 years ago and have watched and aided the business grow.
"There has been a clear growth strategy which has given the company the extensive range it now offers. By being innovative they have continually developed new products that have been closely targeted at markets they understand and continue to have significant potential."
Funding for the deal came from the Wales Business Fund, which is part-funded by the European Regional Development Fund through the Welsh Government.
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- The Development Bank of Wales was set up by the Welsh Government to support the economy of Wales by making it easier for businesses to get the finance needed to start up, strengthen and grow. The purpose of the Development Bank is to unlock potential in the economy of Wales by increasing the provision of sustainable, effective finance in the market.
- Launched in October 2017 it will become a cornerstone organisation for delivery of public sector financial products, supporting micro to medium businesses in Wales and increasing the supply of finance. It will promote economic development through an adaptable delivery model that is responsive to market needs whilst providing continued value for money for public funds. It will deliver key Welsh Government policy objectives measured through performance targets and providing investment management and support services across the whole of Welsh Government.
- Formerly known as Finance Wales, it has supported Welsh businesses with investment funds since 2001. It has directly invested £0.5 billion into Welsh businesses and attracted £0.7 billion of private sector investment. Together this has boosted the Welsh economy by over £1.2 billion. These are the figures for the end of the financial year, 31st March 2018. Now as the Development Bank of Wales it has over £1 billion of funds under management which includes administration of the Help to Buy – Wales shared equity scheme.
- Media centre: www.developmentbank.wales/media
Development Bank of Wales Plc (Banc Datblygu Cymru ccc) is the holding company of a Group that trades as Development Bank of Wales. The Group is made up of a number of subsidiaries which are registered with names including the initials DBW. Development Bank of Wales Plc is a development finance company wholly owned by the Welsh Ministers and it is neither authorised nor regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The Development Bank of Wales has three subsidiaries which are authorised and regulated by the FCA. Please note that neither the Development Bank of Wales Plc nor any of its subsidiaries are banking institutions or operate as such. This means that none of the group entities are able to accept deposits from the public. A complete legal structure chart for Development Bank of Wales Plc can be found at www.developmentbank.wales.
- Chevler was bought in 2009 by the current senior management team backed by Finance Wales. Turnover has doubled since then.
- It currently employs 90 people.
- The investment will be for new equipment in Enterprise House, a recently refurbished unit.
- The company is now producing nearly 200 million tulip muffin wraps a year. If you laid these end-to-end they would stretch from London to New York. And that's not counting the number of brimmed muffin cups and cupcake cases that leave the factory every day.