Auto component manufacturer secures £20m finance deal to fund growth

COLESHILL-based automotive component manufacturer Sertec has secured a £20m funding package to help fund the relocation of its new head office and investment in new equipment.

The company needed the additional space to cope with a big increase in orders from its principal customer, Jaguar Land Rover, following its expansion into China.

The company’s growth was recognised earlier this year when Chancellor George Osborne agreed to officially open the new base.

The funding deal agreed with the Lloyds Bank Commercial Banking team based on Colmore Row in Birmingham includes a £7m increase in trade finance facilities to support Sertec’s exposure to tool stamping imports from China. The finance package also includes term loan and asset finance facilities to fund future capital expenditure projects, and the deal takes the business’ total funding facility with Lloyds Bank to more than £38m.

Sertec is a global leader in a range of steel and aluminium manipulation and assembly processes, including transfer and progression presswork, tube manipulation, wire forming, deep drawing, welded and self-piercing riveted components. Established in 1962, the business has an annual turnover of more than £130m and now employs over 1,000 people at its head office and across its network of strategically located global operations.

Sertec’s new 120,000 sq ft facility on Gorsey Lane is situated less than a mile from the business’ previous head office operation in Coleshill and has been named Wincaster House, to acknowledge the business’ first factory which was based on Wincaster Way in Aston in 1962.

The majority of the new site – 90,000 sq ft – is made up of a logistics and warehousing hub, with new state-of-the-art robotic assembly cells being introduced later this year. The remaining 30,000 sq ft space is accommodating Sertec’s head office functions, including its commercial, purchasing, finance, HR and IT departments.

The business’ heavy stamping operations will continue to operate from its original site in Coleshill, with the investment in new premises effectively creating additional space for this large scale press function. Alongside the head office relocation, the funding from Lloyds Bank will also support Sertec’s investment in new presses and automation, enabling the business to increase its specialist presswork and stampings operations for its growing client base.

Sertec has been a customer of Lloyds Bank since the business was established in 1962 and is looked after by Colmore Row-based Relationship Director Chris Pennick.
 
Martyn Hughes, Group Finance Director at Sertec, said: “In recent years, we have experienced particularly buoyant demand for our specialist presswork and stampings operations and this has led to a need for further investment in our business.

“Having simply grown out of our head office operation, we needed to relocate to much larger, more suitable premises, whilst retaining a close connection to our head office roots in Coleshill. The new building on Gorsey Lane is perfect for our existing needs and provides us with plenty of room to grow this area of the business and its workforce in the future.

“Lloyds Bank has played an instrumental role in supporting our growth and development since Sertec was established and the latest funding is another important milestone in our relationship. Chris and the Birmingham team have worked closely with us to provide additional facilities, which reflects their belief in our growth strategy.”

Pennick added: “Sertec has a growing reputation as a heavyweight Midlands manufacturer and the need for highly skilled presswork and stamping capabilities in increasingly buoyant automotive markets is sustaining a strong demand for its services.

“This is a great example of a UK mid-market business that is continuing to go from strength to strength and generating steady growth across its operations. The opening of this sizable new premises will have a hugely positive effect on Sertec and its future ambitions.”