The factory, which creates English Muffin-making machines for export markets around the world, is expanding into a new purpose-built 35,000 sq ft unit at the Pendle Court development, Lancashire alongside the M65.
Its current factory in Barrowford is too small to manage the growth of the business. The move is expected to create 10 new jobs.
Lancashire Rosebud Finance, which is managed by Mercia Fund Managers, has granted a £600,000 loan to fund the move.
Sugden, which was established in 1972, said it is a world leader in hotplate lines, which are used to make traditional English products such as English Muffins, crumpets, pancakes and potato cakes.
Following the death of its co-founder in 2014, Sugden was acquired by Chris Baldwin of Baldwin Technical Services with the help of a Rosebud Loan.
Baldwin Technical Services provides electrical engineering services to the food industry and worked closely with Sugden to install its machinery lines.
The group now employs over 60 staff at both the Sugden factory and at Baldwin's site in Heywood. The new premises will provide additional space for Sugden and will also act as group headquarters.
‘Space and flexibility’
Baldwin, managing director of Sugden, said: "Without the financial help from Rosebud, the move to the new site for Sugden would be delayed by at least two years, which would have compromised further orders that are in the pipeline from all over the world. We need the space and flexibility that the new site will bring to our company. We would like to thank Rosebud and RBS for their continuing support."
Rosebud Finance is managed by Mercia Fund Managers on behalf of Lancashire County Developments, the County Council's development arm.
Peter Rooney, Investment Manager with Mercia, said the acquisition of Sugden was a sound decision for both sides.
‘Worked closely together’
“The two companies had long worked closely together and with the assistance of Rosebud, since then they have outperformed the original forecasts and gone from strength to strength,” he said.
“This latest Rosebud funding will allow the group to take the next step in its development and move to larger, purpose-built premises."
County Councillor Michael Green, Cabinet member for economic development, environment and planning, said: "For many years, we've supported companies across Lancashire, creating new jobs and boosting the county economy. Sugdens came to us originally to bring the two businesses together, and thanks to the success they've already had, they're now looking to grow even further with their new premises.”