West Midlands firms first to benefit from bank’s £25m auto sector fund

AN initial £25m set aside by sister banks RBS and NatWest to support the automotive sector has benefited two local firms.

Launched in 2014 in response to feedback from the UK Automotive Council and the automotive supply chain, RBS Tooling Finance was developed as a solution to an urgent requirement for funding assistance to support sector growth.

Automotive suppliers stressed the need for funding in incremental stages to meet a growing demand from manufacturers.

Among the first in the UK to take advantage of the bank’s scheme are Kidderminster-based DMS Chromium Plating and Grainger & Worrall, located in Bridgnorth.

DMS – which has borrowed £250,000 – specialises in the electroplating of injection-moulded plastics and is a supplier to major original equipment manufacturers (OEMs) UK-wide. With a headcount of 100, the business has banked with RBS for seven years.

Chris Sharpe, managing director, said: “We are a Tier II supplier which ultimately supplies in to JLR and this facility effectively provides us with an additional funding avenue.

“We have borrowed an additional £250,000 which will help us purchase the specific tooling required in our manufacturing process, taking pressure off vital liquidity going forward.”

Grainger & Worrall employs more than 500 people and is a casting technology company encompassing up-front engineering, precision machining and consultancy.

The amount it has borrowed has not been disclosed.

Edward Grainger, executive director, said: “On understanding more about the Tooling Finance proposition, it immediately appealed to us and met our needs.
“We work with a lot of OEMs and therefore will find this incredibly useful.”

Richard Hill, head of automotive and manufacturing at RBS, said: “The launch of the RBS Tooling Finance was a solution to help the UK’s supply chain fulfil its potential.

“I am delighted to see businesses now begin to benefit from this funding stream, particularly in the West Midlands where the automotive sector has such a strong presence.”