A Midland
company has cracked one of the toughest markets for its produce – selling rice
milling machines to China, the Birmingham Post reports.
But
Solihull-based Koolmill said difficulties in accessing funds to expand was
hitting its plans to establish a manufacturing base in the Midlands.
Koolmill chief
executive Alec Anderson has likened the firm's products as being the milling
equivalent of the Dyson vacuum cleaner but says he has been frustrated at the
firm's inability to secure UK funding or Government backing.
Instead the
firm is developing its business in China through a joint venture and is now
seeing its machines manufactured over there.
Mr Anderson
said: "It's a bit like James Dyson – what he was doing with vacuum
cleaners we are doing with milling machines and taking on a global industry.
But we're looking at big customers and they are waiting to see how it pans out.
"When
you're selling a £300 vacuum cleaner people are a little bit miffed if there's
a problem but if you're running a mill you're going to need 5-10
machines costing £30,000 each.
"We're a
small company, there are huge commercial risks and so it's pretty tough but
China has a different attitude to here in the UK. For years we have been trying
to raise money in the UK to set up a manufacturing operation.
"I think
it comes down to the fact we don't easily fit into any of the categories and
intellectual property is an intangible asset, which in banking terms has no
value, so can't be borrowed against."
Koolmill had
hoped to set up a Midland manufacturing base employing up to 40 people and
still has hopes of doing so to cater for the premium end of the market.
Read more HERE.
The Global Miller
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