Car components firm eyes up 50% growth
Welshpool-based car components company Castalum has secured £6m in funding from HSBC Commercial Bank to support growth.
The package includes invoice discounting, asset finance and working capital facilities, and has been arranged through HSBC’s Birmingham Commercial Centre.
Castalum is an aluminium diecaster, supplying car and truck components to the UK, Germany, Poland, Italy, Canada, Mexico and the Far East.
Nearly three-quarters of the firm’s production is for export, across 30 vehicles lines by the likes of Aston Martin, BMW and Porsche.
Following a significant contract win with a European manufacturer, Castalum expects turnover to increase by 50%.
Several existing contracts have also been expanded, leading to additional shifts at the firm’s Buttington Cross Enterprise Park headquarters, and an increase in its current employee numbers of 150.
Castalum Managing Director Keith Brown said: “We have clear plans to grow the business and believe this new contract will be the first of many. We operate from best in class purpose-built facilities, with state of the art automation and lean strategy throughout the organisation. This means we can offer our customers a quality product at a competitive price.
“Having a bank that understands where we are heading and can support our growth is vital and we are delighted with the work of Joanne and her colleagues at HSBC. This new HSBC funding package gives us the capacity to support our growth plans, creating new jobs in the Welsh automotive industry.”
The deal was led by HSBC senior international commercial manager Joanne Yapp-Pennino, with support from Adrian Gill, HSBC Birmingham area commercial director.
Andy said: “It was important that this deal was completed in a short timeframe and Joanne and the team worked tirelessly to achieve this target. Castalum is a successful company that has already demonstrated it can achieve impressive levels of growth and I’ve every confidence that it can build on its recent contract win. This business is exactly the type of internationally-focused company that HSBC is well-placed to support.”
Mazars undertook financial due diligence and Squire Sanders acted on behalf of HSBC for the legals.
This was posted in Bdaily's Members' News section by Tom Keighley .
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