Contract furniture manufacturer Ambic Manufacturing has become self-sufficient in energy, following an installation of solar panels, made possible by specialist financing.
Ambic manufactures bespoke contract furniture for global customers in industries, including leisure, retail, marine, hospitality and pharmaceutical. Its manufacturing centre in County Durham uses state-of-the-art CNC machines to turn designs into precision-made furniture and fittings.
Given the energy-intensive nature of manufacturing, Ambic found costs were quickly becoming unsustainable in the face of rising energy prices. The company looked into installing solar panels on the roof of its Chester Le Street factory to help with its energy costs.
Originally, the company planned to invest in a small solar installation using its own capital, but in liaison with finance broker Anglo Scottish, Ambic found that by increasing the size of the investment, the business could become entirely energy self-sufficient.
Such an investment was beyond its budget, so Ambic was recommended Siemens Financial Services (SFS) a specialist financier. SFS says that its funding solutions consider every factor: the commercial requirements; the specifications of the desired product; and its real-world application. SFS was therefore able to tailor an agreement to match Ambic’s business needs and the expected outcomes of the installation.
Taking into account Ambic’s existing energy costs, SFS supplied a financing package that spread the cost of investment over a seven-year term, and structured the arrangement so that the energy cost savings from the solar panels would cover almost the whole cost of the initial investment. Ambic has also been able to keep its electricity costs below prior levels all whilst servicing the new asset debt.
With the new solar installation, Ambic is expecting to save £1.94m over 25 years, and eventually run on 100% renewable energy.
Liam Hunt, Managing Director at Ambic said: “Communication throughout the whole process was fantastic. Charlotte Enright at Anglo Scottish and SFS looked at what we needed and created a bespoke solution for us which met our needs entirely and made the whole process a lot easier. At the end of the day, the numbers don’t lie. Using finance for this large purchase has allowed us to keep cash in the bank which we can reinvest and use to fund new customer projects.”
Emma Gallagher, Internal Sales Account Manager, Siemens Financial Services UK, said: “Even though the benefits are clear, not enough businesses are seizing the opportunity to invest in sustainability and take control of their energy costs. Ambic are among a group of proactive businesses who have set themselves an ambitious goal and found the means to make it happen.”
