Compartmentation & Dehumidification / Toffee Production Project

EXECUTIVE SUMMARY This business plan sets out a strategic capital investment to modernise and optimise toffee manufacturing operations at our confectionery facility in Merthyr Tydfil, supported through funding from the Welsh Government Food Business Accelerator Scheme (FBAS). The business manufactures a broad range of confectionery products, including wafers, chocolate-coated wafers and biscuits, mallow-based products, and toffee confectionery.

Operations are supported by six enrobing lines, two moulding lines, one mallow production line, and one toffee production line, currently operating across two production shifts per day, with night shifts dedicated to maintenance, sanitation, and preparation activities. Despite a strong market position and established customer base, the business’s growth is currently constrained by unreliable toffee manufacturing equipment, high levels of unplanned downtime (26.93%), and inadequate environmental control systems.

These limitations restrict production capacity, reduce operational efficiency, and necessitate seasonal shutdowns of up to nine weeks per annum. As a result, the business is unable to fully meet existing customer demand or pursue new commercial opportunities.

The proposed investment directly addresses these constraints and will transform the toffee manufacturing operation into a scalable, efficient, and resilient production platform capable of delivering sustained year-on-year growth. The investment will deliver a step change in production capacity, increasing throughput from 444 kg/hour to more than 700 kg/hour through the replacement of critical wrapping and depositing equipment.

In parallel, improved environmental control will eliminate seasonal production shutdowns, significantly increasing available annual operating time. These combined improvements will result in a substantial uplift in total output capacity.

Operational reliability will be significantly enhanced through the reduction of unplanned downtime and the introduction of modern, high-performance equipment. This will improve production plan attainment, strengthen service levels, and increase customer confidence, supporting both contract retention and expansion.

Enhanced product quality and consistency will be achieved through improved process control, reducing defect rates, customer complaints, and product returns, while strengthening the business’s competitive position in securing new contracts. The investment will also enable a transition from the current operating model of approximately 14 hours per day to a 24-hour, five-day production cycle.

This expansion will maximise asset utilisation, support increased output in line with demand, and create new employment opportunities within the local area. A core outcome of the project is a significant and measurable improvement in productivity.

Increased throughput, reduced downtime, improved labour efficiency, and higher first-time quality will drive a substantial increase in output per hour worked and Gross Value Added (GVA). Waste reduction and improved yield will ensure that a greater proportion of raw materials are converted into saleable product, while enhanced process stability will optimise labour deployment and reduce non-value-adding activities.

The investment will further strengthen the business’s ability to achieve and maintain industry-recognised accreditations, including compliance with the BRCGS Global Food Safety Standard. Improved process control, environmental stability, and traceability will reduce non-conformances, enhance audit performance, and provide a robust platform for continuous improvement and future certification development.

In addition, the project will deliver a meaningful reduction in the carbon intensity of manufacturing operations, supporting the Welsh Government’s transition to a net zero economy. Increased production efficiency will reduce energy consumption per tonne of output, while the replacement of obsolete equipment an