The Welsh Government has stepped in to purchase a commercial property in Llanfyllin in Powys, paving the way for automotive parts manufacturer Marrill Group Ltd to take over the plant - securing 102 jobs and future expansion opportunities at the site, Economy Minister, Vaughan Gething, has announced today.
The company has also secured a seven figure loan facility from the Development Bank of Wales and an offer of non-repayable finance of £700,000 from the Welsh Government towards planned capital investment in new plant and machinery, which will support the creation of further new jobs at the facility.
The arrangement between the Welsh Government and Marrill also grants the firm a 5 year option to purchase the building and yard.
The site was vacated by Stadco Limited who have decided to consolidate their operations elsewhere in the UK.
Economy Minister, Vaughan Gething said:
“The Welsh Government is determined to help create high-quality jobs across Wales and so I’m pleased we’ve been able to step in and help secure 102 high quality jobs in Llanfyllin.
“The loss of this facility would have had an adverse impact not only on the town itself but also on local supply chains and surrounding rural communities. As soon as we became aware of Stadco’s intention to close the site, we looked for a solution that would help retain these high-quality jobs in the town.
“Marrill are making a significant capital investment to acquire the business and necessary investments into the activity at Llanfyllin. I’m very pleased to say the Welsh Government and Development Bank will play a crucial role expanding operations, which will help create more new jobs.
“I also applaud the company’s green credentials; with a new 2,500t press being installed into the Llanfyllin site, the company will be able inshore work from the continent.”
Jason Phillips, Managing Director Marrill Group Ltd said:
“It has taken 18 months of hard work and negotiation to finalise this acquisition. With the combined efforts and support from the Welsh Government and Development Bank Wales, we are delighted with the final outcome. We will be investing in the plant and expect this acquisition to propel our Group Sales to circa £35m. It is a tremendous achievement, especially considering how the pandemic has stressed the manufacturing economy over the last 2 years.
“The workforce are motivated, Sales forecasts look buoyant and with our planned investment, we are excited by the opportunities that lie ahead for the plant.”
Rhodri Evans is a Deputy Fund Manager with the Development Bank of Wales. He said:
“The Marrill Group is a well-established business with a highly experienced management team who are committed to growing the business from their new site in Powys.
“We’ve worked closely with our colleagues in the Welsh Government to secure this important investment for mid-Wales; providing the funding to help purchase the business and invest in new equipment, safeguarding jobs and creating opportunity for future growth.”
Tanya Wilson of Haines Watts carried out the financial due diligence on behalf of the Development Bank of Wales. Commercial due diligence was provided by Ian Henry of AutoAnalysis Ltd
