Afon Engineering is investing in a 329kW 699-panel rooftop solar energy system at its Swansea manufacturing facility, helping the business reduce carbon emissions, lower energy costs and strengthen long-term competitiveness.
The Llansamlet-based manufacturer has secured a £200,000 loan through the Development Bank of Wales Green Business Loan Scheme to support the installation of the 699-panel system on the roof of its manufacturing facility.
The £250,000 project, which also includes investment from the business, is expected to reduce annual carbon emissions by around 60 tonnes while significantly lowering energy costs for the energy-intensive manufacturing operation. The investment is forecast to pay for itself within four years.
It marks the next stage of growth for Afon Engineering following an acquisition in late 2024, also supported by the Development Bank, which helped secure the future of the Swansea-based engineering company under new ownership.
Employing more than 60 people, many from the local area, Afon Engineering manufactures complex fabricated and precision-engineered components for customers operating in sectors including nuclear, defence, renewables, power generation, construction and oil and gas. Since the acquisition, the business has invested in new equipment, expanded its capabilities and continued to grow, supported by a strong pipeline of projects.
Jason Thomas, Managing Director of Afon Engineering, said:
“Since taking ownership of the business, we've invested in new equipment, strengthened our capabilities, improved productivity, and positioned Afon Engineering for long-term growth. Over the past 18 months, these investments have laid the foundations for continued success and reinforced our commitment to delivering exceptional quality and service to our customers.
“Installing solar panels is the next step in that journey. As an energy-intensive manufacturer, reducing our carbon emissions makes environmental sense, but it also helps us become more efficient and competitive. It's an investment that will benefit the business for many years to come while supporting our wider sustainability ambitions.”
Mark Halliday, Investment Executive at the Development Bank of Wales, said:
“Afon Engineering is a strong example of how targeted investment can help Welsh businesses take practical action to reduce emissions, improve efficiency and build long-term resilience.
“Our support for Afon Engineering began with the acquisition that secured the future of the business. This latest investment shows how the right finance can unlock the next stage of growth, supporting a manufacturer that is investing in its people, its productivity and its future in Swansea.
“The Green Business Loan Scheme is designed to help Welsh businesses invest in projects that reduce environmental impact while delivering commercial benefits, and Afon Engineering shows what that looks like in practice.”
Financed by Welsh Government and the Development Bank of Wales, the Green Business Loan Scheme offers discounted interest rates and patient capital to support businesses undertaking energy efficiency and decarbonisation projects in Wales. Loans from £1,000 to £1.5million are available along with access to fully and part-funded consultancy support to carry out business specific energy audits.
