155-year-old manufacturer targets £75m turnover as it taps into global rechargeable battery market
A 155-year old family owned manufacturer has its sights set on turnover of £75m after making major investments in its Yorkshire and South Africa operations to capitalise on the growing rechargeable battery market.
James Durrans Group supplies carbon-related products that are used in lithium-ion batteries, jet engines and white paint pigments. Its materials are also used in the brake pads of millions of cars and lorries around the world.
The firm received a multi-million dollar US trade finance facility from Lloyds Bank to support its importation of the raw materials it uses.
The funding has helped the business, which operates at nine manufacturing locations across the globe, to release the working capital needed to invest in new resources.
This includes the purchase of two new jet mills for its site at the Phoenix Works near Sheffield England. The new machinery will enable the firm to produce a finer grade of carbon, which manufacturers of batteries and other products are using more frequently.
The company has also invested considerably in a new calciner for its premises in South Africa. This will allow the firm to process materials for customers on-site, whereas previously they had to ship products to and from China for calcination.
Over the past few years the business has experienced significant growth as demand for rechargeable-battery technology increases across the globe. As a result, international trade now accounts for 53% of the firms’ revenue.
It is expected to achieve an annual turnover of over £75m by the end of 2018.
Chris Durrans, managing director at James Durrans & Sons, said: “While we operate across many industries and sectors, the rechargeable battery market in particular presents us with a great opportunity, and we’re investing in our plants globally to meet market demand.
“However, over the past few years the price of key raw materials has more than doubled, putting cashflow pressure on the business.
“The trade finance facility from Lloyds Bank gives us more flexibility with our finances. It’s helping us to import raw materials at the currently high price, without it depleting our capital or stopping us from investing in growth.”
Mark Butterworth, relationship director at Lloyds Bank Commercial Banking, said: “There’s a lot of potential for James Durrans Group to grow over the next few years. The amount of mobile phone users in the world is expected to pass five billion by 2019, while electric car sales are poised to climb to 2 million in 2019. Firms like this in the rechargeable battery supply chain are no doubt set to benefit.
“When a business’s cost base increases, it can often put investment programmes on hold, and as a result companies can miss out on opportunities.
“But there are many solutions that can help firms to navigate increased costs while investing in growth, such as trade finance, invoice finance or asset finance.”
