Fibre King is an 88-year old Queensland-based engineering company that specialises in the design and manufacture of packaging machinery for the food and beverage, pharmaceutical, fresh produce and household goods industries.
Fibre King moved into manufacturing automated packaging in the 1950s, and was one of the first Australian companies to offer packaging equipment that was designed and manufactured locally and had minimal downtime.
Today Fibre King’s award-winning products are sold in Australia and overseas.
Fibre King recently established a factory in Thailand, which has helped to increase its manufacturing capacity and reduce costs, and bring it closer to many of its key customers in Asia.
A high-profile contract
In February 2014, Fibre King was awarded a large contract from a major multinational company that is building two new factories in Dubai.
The contract involved the supply and installation of seven case packing machines and end of line palletisers for use within the client’s coffee and culinary operations.
Fibre King needed to provide advance payment bonds as security for upfront payments received.
While Fibre King’s bank, NAB, was supportive of this opportunity, Fibre King’s operating capital facility would have been reduced by an amount equivalent to the bond.
As a result, NAB suggested Fibre King talk with us to see if we had a solution.
How we helped
We provided advance payment bonds directly to Fibre King’s client.
By not tying up precious working capital, our advance payment bonds allowed Fibre King to target other projects with the same client, resulting in additional orders in Thailand and Malaysia.