Fast-growing Leeds panel processor VC Industries Ltd (VCi) has acquired 20,000ft2 of additional premises to boost growth.

The company, only in its second full year of operation, says the expansion is part of a long-term development plan and allows it to keep pace with customer demand.

The new premises, adjoining its Stourton factory, will be used to expand assembly operations and also for packing, material storage and distribution.

VCi director Robin Cliff said the acquisition represents a leasehold investment of about £110,000 annually. Packing and assembly equipment will be moved next door from the existing 38,000ft2 factory.

Pauline Vernon, director, said: “There is a trend out there of people wanting to outsource. There is a need for people to do assembly work.”

She said business was going “very well” and the company was focusing on putting systems in place to take advantage of business opportunities.

VCi, which started in 2002 when it purchased the assets of the former Renaissance Interiors, is predicting a turnover of £3.5m by the end of the year.

Other developments at VCi, which manufactures components for the office furniture, kitchen, bedroom, bathroom and furniture industries, include the development of a manufacturing cell for sample runs and fast-track orders in the main factory.

A new operating system for accounts and stockholding has been installed and a Manufacture Resource Planning system is currently being introduced with real time shop-floor data collection for order tracking.