AN East Devon timber merchant has increased productivity and begun to expand after investing over £200,000 in new machinery.

PI & MD Salter, based on Church Hill in Honiton, works with organisations such as the Forestry Commission and Euroforest to fell trees responsibly and turn them into timber products.

The company, which works primarily across Devon, Dorset and Cornwall, has purchased a new piece of forestry equipment for collecting and loading felled trees, replacing an older piece of machinery which had become inefficient and expensive due to high repair costs.

Since buying the eight-wheeled Komatsu Forest vehicle, husband and wife team Malcolm and Alison Salter, who run the business, have been able to take on new contracts. They have also employed their son Michael full-time and taken on other part-time workers to help with the increased demand for services.

Half the £210,000 cost of the new machine was met by a grant from the South West Regional Development Agency (RDA). The remainder of the funding was put together with working capital from Lloyds TSB Commercial and an asset finance facility from Lloyds TSB Commercial Finance.

Alison said: "Our old piece of machinery was becoming uneconomical to run due to increased downtime and cost of repairs, so it made sense to purchase the new equipment.

"This has proved much more efficient and we have been able to complete jobs faster and have more time to take on new contracts.

"In the tree -felling industry it is important to be as responsible and sustainable as possible and the new machinery means we can put this into practice. Without Lloyds TSB Commercial and Lloyds TSB Commercial Finance, we would not have been able to make this purchase."

Trevor Brooks, relationship manager for Lloyds TSB Commercial, said: "PI & MD Salter has a long tradition of tree felling in the area and this new investment means the firm can continue their work for years to come. Investment in new machinery is vital in an industry such as this one and the initial outlay will more than pay for itself with the increased efficiency. Along with Lloyds TSB Commercial Finance, we were able to put together a funding package tailored to Malcolm and Alison's requirements that, alongside the grant they received, meant they could achieve their ambition of purchasing the equipment at this crucial stage of the business's lifecycle."

Edyta Zielonka, sales executive for Lloyds TSB Commercial Finance, added: "Asset finance proved an ideal solution for this purchase, as it enables companies to obtain funding for the purchase of the significant assets they need to seize growth opportunities."