Automotive component manufacturer VTL Group has raised £1.5 million in funding from the Business Growth Fund (BGF).

It takes BGF’s total investment in the business to £5.5 – having initially injected cash into the company in September 2013.

Huddersfield-based VTL Group currently provides precision-engineered components to popular automotive customers including Toyota, Renault and Jaguar Land Rover(JLR).

The fresh funds will be used for a capital investment programme that will allow VTL to start supplying components to JLR for its new engine platform.

The parts will be delivered to JLR’s Wolverhampton new base in late 2016. This project will represent the first time this century that Jaguar engines have been designed and built in-house.

>See also: What are potential sources of funding for your business?

Another aspect of the deal sees HSBC offer loan funding to support VTL in its continued efforts. HSBC head of corporate banking, West and South Yorkshire Mike Swift commented that the bank is committed to supporting “ambitious businesses in Yorkshire”.

“Having worked with VTL Group for a number of years, we are delighted to be supporting them in this exciting phase of their development,” he said.

BGF regional head of the North Andy Gregory called manufacturing companies such as VTL Group “critical to the UK economy and our global competitiveness”.

“Their success depends on having the right infrastructure in place to help them implement their growth ambitions,” he continued.

“BGF is committed to providing long-term, patient support of our investee companies, and we are able to provide further capital following our initial investments in the businesses we back.”

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