Advanced Electrical Varnishes (AEV), which manufactures electrical varnishes and resins, has installed a new production line at its Birkenhead factory that will increase capacity by 2,400 tonnes a year.
The investment will also improve the productivity of the 68,000 sq ft Birkenhead factory and AEV's directors are hopeful it will drive the company's turnover from £4.7m to £8m within the next few years.
The business was first established in 1849 as Joseph Kemp & Co, before changing its name to AEV in 1982. It remains an independent, family-owned business headed by Managing Director Jonathan Kemp.
AEV is the UK's largest producer of varnishes, resins, compounds which are used throughout the global electrical and electronic markets. The company exports 80% of products to more than 70 countries and has production facilities in Spain and Malaysia.
Jonathan Kemp, AEV's Managing Director, said: "This new investment significantly increases our manufacturing capacity and improves the overall efficiency of our production process. An increased in capacity by 2,400 tonnes will make a major difference to our operations and it ensures that we have the headroom to continue growing the business in the UK and overseas."
Lombard, the asset finance arm of NatWest, provided a £190k loan to AEV to help fund the purchase of the new machinery. AEV also received £44,000 from Wirral Council's Think Big Investment Fund.
Andrew Thrower, Relationship Manager for Lombard, said: "AEV is a great example of a UK manufacturing business which continues to grow its operations on a global scale. The company has a long track record of investing in technology to improve its performance. We are very pleased to provide the funding to support their latest plans."