A BLACK Country manufacturer has been helped on the next stage of its development with support from the area’s leading business loan fund.
Funding from the Black Country Reinvestment Society will allow Cradley Heath-based manufacturer Reddifast Steels to diversify into new products and create jobs.
BCRS was approached by firm owners husband and wife team Rod and Lynne Laight, when they were looking for a small loan to innovate into new markets.
Reddifast Steels, founded by the duo in 1999, supplies precision spring steel wire and strip to the spring and fastener industries in the UK. The company moved to its present location in Cradley Heath eight years ago and now employs 10 people.
Mr Laight said: “We produce precision made steel ready for the manufacture of springs and clips. In an average car, over 2,000 parts are still made by wire and strip manufacturers in the West Midlands.”
As part of diversification plans, Mr Laight set up Reddifast Barriers. The operation planned to produce a new spring steel safety barrier for use in car parks. The firm had to purchase materials costing £10,000 in order to manufacture the barriers.
“We produced a business plan and made a full presentation to our bank, which were fully supportive at the time. It took a year to implement the plan and to gear up, and when we went back to the bank for the finance – just £12,000 – the climate had changed and they said no. I was bitterly disappointed as it was a costly exercise for us. We also had to bear the costs of consultants and a legal team,” he said.
The company then approached BCRS, which was impressed with the firm’s plan and provided the funding. The money has been used to purchase new stock and employ two skilled workers.
“The team at BCRS got on board very quickly and worked swiftly with us, with the result that the new side of the business has sailed ahead and created additional employment,” Mr Laight.
The firm now has one of the biggest users of steel wire in the UK as a client, and it has more than 900 customers in the UK.
“We can measure the increase in orders since the loan from BCRS. Our turnover is £1.3m and thanks to BCRS we are looking to double it this year,” he added.
The firm has supplied the barriers for the Gloucester Quays Centre and is now looking at further expansion, with two additional jobs being created.
Adam Grant, BCRS business development manager, said: “Reddifast have weathered the credit crunch by innovating and developing a new product. We’re delighted to have helped them bring it successfully to market with a relatively small injection of cash.”
