Marpak looking to new HQ as export demand increases

INDUSTRIAL packaging firm Marpak Extrusions is investing £1m in a new Yorkshire production site as export sales help it to grow.

The firm, currently based in Westland Place in Leeds, is building a 10,000 sq ft site in the city’s Brown Avenue this summer, creating 12 jobs, after winning funding from Yorkshire Bank’s Leeds financial solutions centre (FSC) as part of its Investing for Growth initiative.

Marpak was set up by Richard Gibson in the spare bedroom of his Cookridge home in 1980 and today has 26 staff, turning over £10m. It extrudes and converts polythene into sheets and bags for pallet protection in the movement of products including glass, furniture and building materials and exports to France, Holland, Germany, Poland, Denmark, Sweden and Egypt.

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Mr Gibson, who is also a member of the Packaging and Films Association think-tank, said: “Our new facility, which is due to open in July after extensive refurbishment, is needed because our existing production base is at maximum capacity and demand for our products throughout Europe and the Middle East is grow- ing.

“Export sales have risen by 60 per cent in the last 12 months.

“The new factory will enable us to increase our production capacity by 8,000 tonnes a year but this initiative is not just about exporting.

“Some UK businesses acquire extruded polythene from European importers and we also aim to attack this market which, if successful, will help keep more business within Britain.”

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Nigel Scarth, Yorkshire Bank Leeds FSC business partner, who arranged the Marpak funding, said: “The rebalancing of the UK economy will not come from any single dramatic move but by thousands of smaller ones in which first-class operations such as Marpak Extrusions take advantage of growth opportunities and create wealth and jobs as they expand.

“We are pleased to be supporting the company’s new development.”

Investing for Growth means businesses can take advantage of loan repayment holidays, interest-only repayments and extended loan and credit terms designed for growth opportunities.

Businesses signing up to the package can re-invest the cash into their operation for expansion, new staff, equipment, machinery and commercial development.