Newburgh Precision, based in Rotherham, currently employees 75 staff and is aiming to become a 90-strong team by 2019.
Part of the funding has facilitated the refurbishment of the company's Asquith Butler gantry mill, used to machine various products for the defence and nuclear sectors, saving at least £500,000 in comparison to the cost of replacing the existing machine.
Further funding has allowed the company to renew the contracts for two other machines – a Fanuc Robodrill, employed to make large volumes of small parts, and a Kafo machining centre, which is used for the precision machining of helipads.
Plans are in place for further investment in existing machinery and facilities, with another machine currently on order and installation planned for February 2019.
Chris Staves, management accountant at Newburgh Precision said: "Our business has grown considerably over the past four years but in order to maintain this growth it is important that we invest in our existing machinery to ensure maximum efficiency.
"The funding from Lombard Asset Finance has enabled us to renew contracts and refurbish important machinery to increase our capacity as a firm. We look forward to taking delivery of a new machine in February and expanding our capabilities further."
Veronica Wales, Lombard senior relationship manager added: "Newburgh Precision's loyal customer base and future order book is evidence of its efficiency and strength as a business. Our funding will help the company continue to operate profitably and we look forward to supporting Chris and the team through further expansion."
Newburgh Precision www.np-ltd.co.uk