A sustainable plastics packaging manufacturer, which supplies leading retailers such as Morrisons, is back on the growth trail thanks to a £150,000 business loan.

Keighley-based Arvensis, sister company of food plastic manufacturer PFF, was looking to increase working capital after being hit by the soaring price of plastic, which limited its ability to fulfil a healthy orderbook.

Based in Airedale Park, the company recycles plastic bottles into plastic sheets and packaging for the food, healthcare and cosmetics industry.

The £15 million turnover company has invested £1.25 million in new plant to double the production capacity of manufacturing recycled Polyethylene Terephthalate sheet.

Arvensis, which supplies packaging to clients including Morrisons, Asda and Marks & Spencer, turned to funding body Finance Yorkshire for help, and is now looking to secure new orders.

Stephen Dowe, joint managing director, said: “Due to the rise in plastic prices we were short on working capital to fulfil our substantial order book and operating at a reduced level.

Our depleted working capital was restricting our growth and we needed a financial kick. This loan has meant we can satisfy our order books and look with confidence to a strong future.

“Now, with the huge steps that we have taken in plastic film extrusion and thermoforming technology, we can continue to deliver the most sustainable packaging solutions to some of Britain’s best-known retailers.

“Our investment manager Jonathan Craig saw how our business had been affected by the rise in plastic prices and the reasons why it would not impact on trade going forward.

“He was extremely supportive. The relationship we built up and the knowledge Jonathan took on board meant he could make a proper and considered decision by seeing where our business was.”

Jonathan Craig, of Finance Yorkshire, said: “This company produces specialist products that it uses within the group and that it also sells externally. It has made significant investment in the manufacturing process which will allow it to grow strongly and remain at the forefront of its sector.”

Darren Precious, who runs Keighley Business Network on behalf of Bradford Chamber of Commerce, added: “Many firms are still struggling with a lack of working capital at present.

“It’s good to know that Finance Yorkshire is getting that crucial support out to firms at this time. They are helping to turn the economy around and ensuring that businesses like Arvensis will lead the way out of the recession.”