The new factory will enable the company to significantly improve production efficiency and ensure it has the capacity to meet increasing customer demand.

Wolds Manufacturing specialises in fine fragrance and employs 25 people across three rented units. The completed project will bring these units together under one roof and allow the company to create 16 new jobs by 2021.

The new 2.4-acre site will quadruple both production and warehouse capacity as well as increasing efficiency by up to 20%.

The grant of £327,653 has been awarded by the LEP from its Greater Lincolnshire Growth Fund which offers match-funded grants of £150,000 to £500,000 to help Greater Lincolnshire businesses to increase productivity and create new jobs.

Wayne Baker, Managing Director, said: “The money will mean that we can take the business to the next level in terms of capacity – at the moment we have two production lines and an inefficient building,” he said.

“This move will give me four more production lines, all in the same room, and a more efficient working space, because everything will be in the right place.”

The move also creates an opportunity for developments in the future and leaves the company able to expand its products and market.

“We’ve only developed about 65% of the land so there is still land retained for future development if we wish to do so. We’re building the portfolio all the time.”

Ursula Lidbetter OBE, Chair of the Greater Lincolnshire LEP, commented: “We are pleased to be able to support another growing SME in Lincolnshire through the Greater Lincolnshire Growth Fund.

“We are looking forward to the completion of the renovations and hope that it encourages other businesses to apply for financial support from the fund.”