OTTAWA, Jan. 29 /CNW Telbec/ - The Business Development Bank of Canada (BDC), working with a financial institution in the private sector, has provided a $3-million loan package to Komtech, a Kanata-based plastic molding manufacturing company which will use the funds to diversify and grow.
The loan was made possible through the Business Credit Availability Program (BCAP), a government initiative whereby BDC partners with other financial institutions to provide financing that helps eligible small and medium-sized businesses.
With its head office in Kanata and a manufacturing plant in Pickering, Komtech provides products and services such as injection molding, global mold procurement, engineering, assembly, silk screening and prototyping. The company employs some 85 people and serves a diversity of clients in the high-tech, automotive, medical and consumer sectors. Komtech is pursuing expansion in Canada, has moved into the American market and has started production in India with a new plant slated for growth in the coming years.
Diversification has been the key to Komtech's survival and growth over the last ten years. "You think you can get comfortable, but that doesn't happen," says company CEO Raj Mathur. "There are new challenges every day."
For Mathur, outside help from solid and credible partners has been crucial to helping tackle the challenges the company has faced. "BDC was great from the beginning in helping financially, but also in helping us to stay competitive by making our production as effective as possible."
Mathur also credits the people in his company for Komtech's ability to adapt to changing circumstances. "Machines can make any parts, but if you surround yourself with competent, dedicated employees, you can face any kind of storm," says the CEO who has transformed his company more than once. In 1999, about 95% of Komtech's activities were based on high-tech. Two years later, when the techno bubble burst, that figure plummeted to 20%. At the time, Mathur decided to put his automobile experience to good use and by 2006, providing plastic molding for the automobile industry accounted for 75% of Komtech's activities. When the recession hit, Mathur and his group of managers tackled the situation with the goal of diversifying once again. "Through an acquisition in Toronto, we diverted our production into the medical and consumer products sectors," he explains. "Last year we bought a company in the U.S. and now have a presence in that market as well."
"Clients want us to be there for them at the right time," says Pierre Lauzon, BDC Portfolio Development Manager in Ottawa. "Most companies like Komtech need to spend money before they can expect to make money. When times are tough, finding a solid financial partner makes all the difference."
BDC is Canada's business development bank. From more than100 offices across the country, BDC promotes entrepreneurship by providing highly tailored financing, venture capital and consulting services to entrepreneurs. For more information, visit www.bdc.ca.
SOURCE Business Development Bank of Canada
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