William Sinclair, a gardening products supplier, is about to commission a second SuperFyba production facility in the north of England that will triple production of the peat free product.
The firm is set to invest £1.5m from its cash reserves in the new plant to lift production of SuperFyba to around 150,000 cubic metres per annum. Production of SuperFyba at the new site is due to commence in November 2012.
Demand for the product has been partly driven by the governmental target to eliminate the use of peat in horticulture by 2030.
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"The increased availability of this peat alternative will bring significant reductions in non peat raw material costs and at the same time enhance the consistency of our already high quality peat reduced and peat free products," the firm said.
"The opening of a second site to manufacture SuperFyba is in line with both the company's growth strategy and the company's drive to create greater efficiencies. The board fully expects the new site to bring financial benefits to the company in the near term.
"With the continued market growth of peat free products, opportunities to open further SuperFyba manufacturing sites are being reviewed."
The investment in the new production facility will move William Sinclair a further step towards reducing the company's exposure to a poor peat harvest due to inclement weather. Haulage costs will also be reduced as raw material transport miles are minimised.
William Sinclair's specialist soils subsidiary, Freeland Horticulture, which developed the SuperFyba technology, will operate the new production facility.
The share price rose 1.93% to 09:57.
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