The grant has been awarded by the Coventry and Warwickshire Local Enterprise Partnership (CWLEP) and is part financed by the European Regional Development Fund (ERDF) as part of the Coventry City Council Business Support Programme.
Sarginsons is investing in a complete new sand foundry, two new gas recuperation furnaces, automated finishing equipment and material handling equipment.
It will lead to the creation of at least five new jobs as Sarginsons will be a ‘tier one’ supplier of components to a prestigious automotive company in the region as the company will be responsible for making the wishbone and B-pillar components of a new vehicle.
It is part of a wider business strategy for Sarginsons that will see the firm working on behalf of clients from the development stages through Sarginsons Technical Consultancy right through to the supply of parts.
Anthony Evans, managing director of the company, said: “We have shown over recent years that we want to invest in people and technology as part of our overall strategy to grow the business.
“This grant funding means we can accelerate those plans so we are extremely grateful for the support we have received from Coventry City Council and the CWLEP through the Coventry and Warwickshire Business Support Programme.
“We have been planning to grow our capabilities to supply a bigger volume of components and this latest investment allows us to do that and we are very pleased to be playing such an important role on an exciting new vehicle.
“This is a very exciting time for Sarginsons as we press ahead with our plans to grow the company and make the most of the technical expertise we pride ourselves upon in order to deliver high quality research and products on behalf of our clients.”
Councillor Jim O’Boyle, Cabinet Member for Jobs and Regeneration at Coventry City Council and a Board Director at the CWLEP, said: “The automotive industry is moving rapidly toward vehicle lightweighting and it is good to see a local company at the forefront of that.
“It is great that the Council and LEP have been able to support Sarginsons through its Business Support Programme which in turn helps our city and region maintain its position as a world leader in the automotive industry.”