Member Article

Leeds-based Jaguar parts manufacturer sees £1.5 million BGF funding

Leeds-based VTL Group, a manufacturer of engineered components for the automotive industry, has received a further £1.5 million investment from growth capital provider BGF, alongside loan funding from HSBC.

BGF has now committed a total of £5.5 million in the business, following an initial investment in September 2013.

The firm is set to commence an eight year project to supply engine components through Ryobi UK to Jaguar Land Rover for use in its new engine platform.

This is the first Jaguar engine designed and built in-house since the late 1990s. From its manufacturing sites in Huddersfield, VTL will commence supply of components to JLR’s new £350 million factory in Wolverhampton in the second half of 2016.

Existing customers include Cummins, Toyota, Renault, Nissan, Delphi, Ryobi, JLR and Schaeffler.

Bruno Jouan, chief executive, VTL, commented: “The cam carrier project is a significant win for the business, and for British engineering. We’re delighted to be working with JLR on what is an incredibly exciting project.”

Andy Gregory, regional head of the North, BGF, commented: “BGF is committed to providing long-term, patient support of our investee companies, and we are able to provide further capital following our initial investments in the businesses we back.

“In 2014, we provided £37 million in follow-on equity capital, in addition to £176 million initial investments.”

Mike Swift, head of corporate banking, West and South Yorkshire Corporate Banking Centre comments: “Our priority is supporting ambitious businesses in Yorkshire.

“Having worked with VTL Group for a number of years, we are delighted to be supporting them in this exciting phase of their development.”

This was posted in Bdaily's Members' News section by Clare Burnett .