Hawico, which manufactures cashmere garments for retail at its international name-brand stores, has secured the equipment finance lending to purchase new state-of-the-art knitting machines.
The specialist Shima Seiki machines are replacing older equipment, enabling the company to speed up production, reduce material waste and experiment with new patterns to expand its product ranges.
Some £248,000 of funding is being provided by HSBC UK.
Hawico director Ewan Thomson said: “We pride ourselves on the fact that we are able to make cashmere garments that are wholly Scottish from start to finish.
“Having HSBC UK’s support to invest in the best possible technology will enable us to manufacture more quickly and with more creativity. By providing access to new technology, we’re also hoping to encourage younger generations to enter the textiles industry.”
The firm crafts luxury cashmere garments from its factory in Hawick and operates 13 stores across Scotland, England, Germany, Italy, Switzerland and Japan, in addition to selling its products online.
Marcus Sangster, relationship director for equipment finance at HSBC UK, added: “The Scottish textiles industry has an international reputation for creating quality cashmere garments. These new machines demonstrate Hawico’s commitment to keeping the craft alive in the Borders, whilst modernising with innovative technology to pursue growth.”
Earlier this week, HSBC vowed to return shareholder dividend payouts to pre-pandemic levels “as soon as possible” after it became the last of the big banks to report its first-half results.