Sales boost as packaging specialist opens second factory

Packaging specialist Sarpack’s future is all wrapped up as its turnover is set to increase by more than £2m next year after opening a second manufacturing facility.

Sarpack, which operates from two units in Maesteg, opened a new factory in Margam to meet the growing demand from its diverse client base and now employs twenty five people.

The £780,000 investment in the property and new machinery was backed by £137,000 support from the Welsh Government’s Economic Growth Fund. The funding boost has not only helped create ten jobs but has seen a year on year increase in the company’s turnover, rising from £4.2million in the last financial year, to £5.5m this year with a further predicted rise to £6.5m next year.

The company manufacture a wide range of tailor-made polythene and polypropylene bags and industrial packaging for numerous sectors. Its products range from tough, puncture resistant mail order sacks – to covers measuring 2.7metres wide and up to 10 metres long for furniture and industrial products.

On the back of its increased sales Sarpak invested a further £500,000 in a new sophisticated extruder that was fired up this month.

Economy Minister Edwina Hart said: “ It’s great news to hear how WG support is providing the catalyst for growth. In this case the grant has helped create jobs and increase turnover, enabling the company to reinvest in additional equipment and introduce new processes and technology into the business to drive growth.”

Director Lee Shackson said: “ Our most recent investment in top of the range machinery is also helping to safeguard the jobs created with WG support. It ensures we have a long term sustainable future and our business plan is to continue to grow. Support from the WG helped us expand when we needed to and was vital for our expansion.”

Both Sarpak factories operate 24 /5 and supply businesses throughout the UK. It was recently named the Royal Mint’s SME Supplier of the Year at an awards ceremony.