Banking team smoothes US investment by manufacturer

A NORTH West banking team from HSBC has played a major role in helping an international deal hit the road.

The US subsidiary of Italian automotive components manufacturer Reflex & Allen has secured a $1.2m funding package to help service a new overseas contract in the US, after close collaboration between HSBC USA and HSBC’s Cheshire commercial team.

Reflex and Allen’s new US arm secured the finance from HSBC USA on the back of the bank’s strong relationship and understanding of Reflex & Allen’s UK division, which is based in North Wales.

The funding  will be used to build a production line at the Indianapolis plant. The US division was launched  last year to work with Reflex & Allen’s US clients, but as the company had no track record there it found it difficult to raise finance.

Reflex & Allen was founded in 1988 in Modena, Italy, and makes a range of pneumatic, electrical, fluid power and safety devices for commercial vehicles.

It employs 220 people in the UK and recently-announced plans to relocate to the former Hotpoint factory in Bodelwyddan.

Gabriele  Da Re, Reflex & Allen UK managing director, and finance director for the wider group, said: “Our US division is essentially a new company and  therefore as  a  start-up found it difficult to secure funding.

“By utilising the strength of the company in the UK, and through close collaboration between HSBC in Chester and its counterparts in the US, we have been able to fund this important contract.

“We believe this contract will be the springboard for the growth of the US business and also creates much-needed production capacity within the UK division.”

Tony  Fulton, HSBC area  commercial director for the Cheshire and North Staffordshire,said: “This is the first UK-USA lend where we have used the knowledge and experience of the UK division to facilitate the lending activity in the States. The deal demonstrates HSBC’s ability and commitment to help our global clients to expand internationally.”