Jem Recycling & Waste Management is launching a new manufacturing facility in Runcorn with funding from the Regional Growth Fund and the North West Fund for Micro Loans.
The business has raised an investment package totalling just over £160,000, which includes £100,000 from the Merseyside Special Investment Fund through funds it manages for the Regional Growth Fund and the North West Fund, together with the company's own investment and asset finance.
The money will be used in part to fit-out the manufacturing facility.
Sales director Debbie Richmond said: "The funding has enabled us to set up a manufacturing operation in Runcorn which produces a high-quality range of bean bags, throws and cushions. New products are expected soon including pet beds and foot stools.
"We are selling the products through retailers including Ponsford Furniture, Bella Chic and Taskers and also online through our website. There are also plans to open a factory shop at our site.
"In the future we plan to look at other areas we can use manufacturing to recycle waste for other customers as well as expanding our facilities management offer from core business."
Merseyside Special Investment Fund director Paul Humphray said: "Adding the manufacturing facility was a great idea. It will provide Jem with an extremely profitable new income stream and provides an environmentally friendly solution to waste disposal.
"The expansion to the business will create around 20 new jobs in total which is something we are always keen to support."
Turnover for the company is expected to reach £1m this year and it is expected this will grow to £1.3m next year.
Read more at www.insidermedia.com