The North East Small Loan Fund, supported by the European Regional Development Fund, has invested £50k in Renovo Solutions, based on the Tanfield Lea Industrial Estate, to bring in new equipment that will expand the range of tools the company is able to manufacture, repair or renew.
The business will also use the cash injection to expand its footprint in the North East primarily, taking advantage of sub-contracting opportunities across the region before entering new sectors including aerospace, medical and energy industries. It expects to create a number of new jobs as a result.
Renovo is the only CNC-equipped rotary tool manufacturer in the North of England, and aims to helps clients in a range of industries become more efficient and sustainable in their use of materials and machinery.
Its founder, Antony Gray, explained: “We are the only business of our kind in the whole of the north, which opens up a wide range of opportunities, and the growth we’ve already enjoyed is a good indicator of the demand that’s out there. “The equipment we’re bringing in significantly improves our manufacturing capacity and allows us to take on more and bigger contracts, whether for producing bespoke tools or renewing and extending the working life of existing items.
“Sustainability is a crucial part of our service offering, and alongside the environmental benefits that enabling our clients to make better use of the tools and materials they use, there are cost and time-savings benefits to be had too.”
Mike Guellard, investment executive at NEL Fund Managers, added: “Renovo is already establishing an impressive reputation in a market where’s there every chance for it to grow quickly, and allying our investment with Anthony’s specialist knowledge makes for a powerful combination.”
The £9m North East Small Loan Fund typically offers loans of between £10k and £50k to businesses in Tyne & Wear, Durham and Northumberland, and is designed to assist with the creation of over 1,200 new regional jobs in more than 320 SMEs over the life of the fund.