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25/02/2015

Pontypool packaging manufacturer has growth wrapped up as turnover doubles following Finance Wales loan

Turnover has doubled at a Pontypool packaging manufacturer since it received a £50,000 loan from Finance Wales.

Diamondpak manufactures well over 20 million cardboard packages a year and is a leading supplier of packaging to the e-commerce and manufacturer sectors in the UK.

The company took out the loan 4 years ago to purchase and install a new die-cutter as well as multi-point gluing and ‘peel and seal’ equipment. 

Finance Wales’ loan, together with support from the Welsh Government, enabled the company to introduce a new range of packaging and boost its capacity to capitalise on the dramatic growth in online shopping and demand for home delivery.

Annual sales of Diamondpak’s new packaging lines now exceed £5m a year.

Diamondpak Director, Russell Davies explained the positive long-term impact the loan has had on the business: “We’re now one of the leading independent corrugated packaging suppliers in the UK and we also provide a range of other specialist design services.  This means we can provide customers with the most cost-effective packaging to suit their requirements.

“The funding and support package from Finance Wales and the Welsh Government has had a significant impact on our business and without it, investing in the business wouldn’t have been possible at the time.  We’ve created 65 new jobs and by increasing our production capacity, we’ve won new contracts from both new and existing customers and doubled our turnover.  We’re continuing to extend our product range and ramp up our production capacity.”

Thanks to its award-winning consultancy and design service, Diamondpak manufactures all packaging to customers’ individual specifications and can satisfy both small and large order volumes.

Finance Wales Portfolio Executive, Matthew Pugh who has worked with Diamondpak since 2011 said: “Diamondpak’s directors have a wealth of industry knowledge which has helped them reposition their business.  They’ve spotted industry trends and successfully moved into profitable new markets.  Their efforts are continuing to pay off and they have some exciting plans in the pipeline.

“The funding package from Finance Wales and the Welsh Government was just the start for Diamondpak.  It’s been a real catalyst for innovation and growth in the business.  Diamondpak has already implemented some significant changes and is on course for further expansion.”

Diamondpak is ISO9001, ISO14001 and FSC certified and supplies an extensive range of corrugated packaging from cardboard shipping boxes to promotional packaging as well as more intricate, protective packaging. All its packaging is fully recyclable and its inks and glues are water-based and solvent free.

The high strength-to-weight ratio of corrugated packaging makes it a popular choice, with around 5 billion corrugated packages used every year in the UK.

Finance Wales’ investment came from the Wales JEREMIE Fund which is backed by the European Regional Development Fund through the Welsh Government and the European Investment Bank under the European Commission's Joint European Resources for Micro to Micro to Medium Enterprises (JEREMIE) initiative.