Lincolnshire agricultural machinery manufacturer Tong Engineering has started building a new factory in Spilsby thanks in part to a £500,000 grant from the Greater Lincolnshire Local Enterprise Partnership.
The long-established family business currently has sites in Spilsby and Wainfleet, but when the new production facility is complete the company will consolidate all its activities on one seven-acre site in the town.
The development will ensure that Tong Engineering can meet its growth aspirations and is expected to create 26 new jobs.
The grant has been awarded by the LEP from its Greater Lincolnshire Growth Fund which offers match-funded grants of £150,000 to £500,000 to help Greater Lincolnshire SMEs to increase productivity and create new jobs.
Tong Engineering’s Marketing Manager Carole Metcalfe said: “Our exports have grown by 40% over the last five years.
“We’re extremely busy and we need bigger premises to increase our production capacity.
“It’s very important to us that we stay in Spilsby where our business first began, so we’re pleased to have been able to purchase a suitable seven-acre site near the Vale Road Industrial Estate.”
Work started on site in early June and the £3.6 million first phase of the two-phase project is expected to be completed by spring 2020.
Edward Tong, Managing Director of Tong Engineering, commented: “Our history is very deep-rooted in the market town of Spilsby. Over the years we have increasingly outgrown our current premises, leaving us no option but to open a second factory 10 miles away in Wainfleet in order to expand.
“Operating over two sites brings many logistical challenges and we have been researching the viability of one new purpose-built factory for many years. As a Spilsby-born company it has always been an overriding consideration to remain in or close to the town, supporting our local communities and businesses while minimising inconvenience to our employees.
“With the support of the Greater Lincolnshire Growth Fund and East Lindsey District Council we are very pleased that we can finally break ground on a new factory. The project will help us to maintain the most advanced engineering practices, increase local employment opportunities and achieve our business growth ambitions.”
Ursula Lidbetter OBE, Chair of the Greater Lincolnshire LEP, added: “Tong Engineering is a successful and well established Lincolnshire business and we are pleased to be able to support their growth ambitions with this grant.
“As an agricultural business Tong operates in one of the key sectors which we aim to support through the Greater Lincolnshire Growth Fund.
“We look forward to the completion of the company’s new factory, which will create new jobs in East Lindsey and help Tong Engineering to grow.”