Garden and landscaping timber products manufacturer Forest Garden plc is targeting further growth after completing a £2m investment in its Larchlap business.

The Worcester-based company has made the Eardisley and Lockerbie Larchlap production facilities into “supersites” and is now considering how best to invest a further £3m.

Group chief operating officer Jonathan Halford said service levels had improved to more than 97% since the capital investment, part of a £5m funding package released by the Royal Bank of Scotland and major shareholders venture capitalist 3i Group plc and Michael Timmis.

He said: “We are hoping for organic growth this year and through the investment we think we are in a position to provide a good service to the industry.”

Three existing buildings at Eardisley have been refurbished to create one 3,000m2 manufacturing and treatment facility, increasing the site’s capacity by 30%. An additional 28,000m2 has been turned into storage space to accommodate and meet seasonal stock requirements.

At Lockerbie, about 2,400m2 of additional covered space has been provided to house four dedicated shed packing lines capable of handling more than 600 sheds per day, as well as creating extra dry storage.

Mr Halford said the company had experienced considerable interest in its new Lifespace timber and aluminium modular shed building system, designed to produce easy-to-assemble contemporary sheds.

Group chief executive Simon Ashton said: “Clear strategies for the Larchlap and Forest divisions have been established, and we are encouraged that our financial stakeholders, as well as our customers and suppliers, are enthusiastic about our approach.”