Lunn Engineering makes six figure investment with support from Yorkshire Bank

25th March 2013

A Midlands engineering firm has its sights set on further expansion after investing £250,000 on new machinery with funding from Yorkshire Bank.
 
Family-owned and run Lunn Engineering, based in Atherstone, Warwickshire, has purchased a Dahlih MCH 800 horizontal machining centre to meet growing demand for its services from major organisations including Shield Engineering and Caterpillar.
 
The machining centre has been financed by Yorkshire Bank’s Business and Private Banking centre in Nottingham through its Growing Business support package. It will enable the firm to increase the volume production of flywheel housings used on earth scraping machines.
 
Lunn Engineering was established in 1938 as the Rotary Pump Company by Fred and Sidney Lunn. It now employs 22 people at its one-acre site on the Manor Road Industrial Estate.
 
Managing director Fred Lunn, who is the son and grandson of Sidney and Fred respectively, has run the firm since 2000. He said plans are underway to extend the factory.
 
Fred said: “The investment in the new machining centre is the biggest we’ve made in recent years and the decision to progress was made easy due to the volume of work we’ve generated.
 
“Last year was an exceptional year for us, one of the busiest we’ve had in recent years to the point where we took the decision to move from one to two shifts. Increasing the shifts coupled with bringing in the new machine has enabled us to vastly increase our production capacity.
 
“We’re always looking to move forward and the next stage of the expansion we’re planning is an investment to extend the back of the factory to give us more space.”
 
Fred said the backing of Yorkshire Bank has played an important role in the on-going success of the business:
 
“My philosophy has always been that business is about relationships, and we’ve had a very good relationship with Yorkshire Bank for many years. It’s a unique relationship in many ways. We’ve often had our bank manager at board meetings which says a lot about how comfortable we are with Yorkshire Bank. 
“An investment like this is not for today, it’s about tomorrow and we value the on-going support Yorkshire Bank have given us.”
 
The deal was completed with the support of Yorkshire Bank relationship manager Nigel Wilson and asset finance manager Steve Fox.
 
Nigel said: “Lunn Engineering is a strong business which has enjoyed healthy growth under Fred’s leadership. The company is a preferred supplier for a host of major manufacturers and is exactly the type of business Yorkshire Bank’s Growing Business package has been launched to support. The package includes fee-free loans and overdrafts and access to a business expansion fund.
 
“We’re pleased Lunn Engineering has been able to benefit from our support and make an investment to further strengthen its already strong position in the market.”