The move to the 23,226m2 site in Llantrisant followed a rise in demand for the convenience foods. FEI also planned to invest in new machinery to double the firm’s capacity.
The increase in space would also enable it to boost investment in the research and development of new products, said FEI.
Lloyd Williams, finance director at FEI Foods, said: “Change in consumers’ cooking habits have contributed to a significant boost in sales over the past few years. People now want quick, high-quality foods, and the convenience of our products has been a key contributor to our success.
‘Operating at near full capacity’
“Although the boost in sales has been great for business, it’s meant that we’ve been operating at near full capacity for the past few years. Moving to the new site will provide us with the additional space and capacity we need to continue on our impressive growth journey.”
Lloyds Bank provided an £8M loan to secure the new premises and enable full refurbishment of the new site, as well as a £11M hire purchase and leasing facility to buy new machinery.
FEI expected to achieve a turnover of £70M within the next 12 months, because of the expansion.
“We’ve been working with Lloyds Bank for the past eight years and they have been an instrumental part of our growth,” Williams added. “This latest financing illustrates their continued commitment to our business.”
Lloyds Banks relationship director Paul Williams said FEI’s move to the new premises would provide the company with a modern space that suited its specific needs.
‘21% increase in turnover’
He added: “Food and drink firms across the UK are thriving, and our recent report into the sector found that companies expect a 21% increase in turnover over the next five years.”
FEI Foods supplies own-label microwavable rice and grain products to supermarkets across the UK and Europe.
Sales have risen significantly over the past seven years for the company, with the number of staff growing from 60 to 360 during the same period.
Meanwhile, Hull-based baker Jacksons has invested £40M in a new factory to create 100 new jobs, after securing planning permission from the local council.