Swansea manufacturer invests £250,000 in solar energy project

Nation.Cymru 

A Welsh engineering company is investing £250,000 in a major solar energy project aimed at cutting its carbon emissions and energy bills.

Swansea-based Afon Engineering is installing a 329kW system comprising 699 solar panels on the roof of its manufacturing facility in Llansamlet.

The company has secured a £200,000 loan from the Development Bank of Wales through its Green Business Loan Scheme, with the remainder of the cost being met by the business.

The project is expected to cut Afon Engineering’s carbon emissions by around 60 tonnes a year and reduce the energy costs associated with its manufacturing operations.

The company expects the investment to pay for itself within four years.

Afon Engineering employs more than 60 people and manufactures fabricated and precision-engineered components for sectors including nuclear, defence, renewable energy, power generation, construction and oil and gas.

The latest investment follows the acquisition of the company under new ownership in late 2024, which was also supported by the Development Bank.

Since then, Afon Engineering says it has invested in new equipment and expanded its manufacturing capabilities.

Managing director Jason Thomas said: “Since taking ownership of the business, we’ve invested in new equipment, strengthened our capabilities, improved productivity, and positioned Afon Engineering for long-term growth.

“Over the past 18 months, these investments have laid the foundations for continued success and reinforced our commitment to delivering exceptional quality and service to our customers.

“Installing solar panels is the next step in that journey. As an energy-intensive manufacturer, reducing our carbon emissions makes environmental sense, but it also helps us become more efficient and competitive.

“It’s an investment that will benefit the business for many years to come while supporting our wider sustainability ambitions.”

The Green Business Loan Scheme is financed by the Welsh Government and the Development Bank of Wales and offers loans of between £1,000 and £1.5m for energy efficiency and decarbonisation projects.

Targeted investment

Mark Halliday, investment executive at the Development Bank of Wales, said: “Afon Engineering is a strong example of how targeted investment can help Welsh businesses take practical action to reduce emissions, improve efficiency and build long-term resilience.

“Our support for Afon Engineering began with the acquisition that secured the future of the business. This latest investment shows how the right finance can unlock the next stage of growth, supporting a manufacturer that is investing in its people, its productivity and its future in Swansea.”

The Development Bank of Wales was established in 2017 and is owned by the Welsh Government. It says it has £2bn of funds under management and has invested more than £1bn in over 5,000 Welsh businesses and property developers.

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