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Wiltshire-headquartered automotive products manufacturer AB Dynamics (ABD) has revealed plans to raise more than £6m to support construction of a new facility.
The company has proposed a share placing which is expected to raise gross proceeds of £5.4m and an offer for subscription to raise a further £1m.
ABD said it planned to use its existing funds to new complete its new 33,000 sq ft manufacturing facility in Bradford-on-Avon and meet existing research and development commitments.
The new funding will then be used for further expansion, with about £2.2m going towards building a 20,000 sq ft factory dedicated to the group’s simulator business.
Investment would also be made in technical and commercial centres in Japan, Korea, Germany and the US, and accelerating existing development programmes and projects for new products.
Tim Rogers, chief executive of ABD, said: “The board has identified a number of exciting opportunities capable of delivering substantial growth over the medium term. The Fundraising will enable us to accelerate our already identified new product and development programmes to capture this potential.
“The additional investment in new premises for our simulator business reflects our growing confidence in the potential for AB Dynamics in this rapidly growing market.”