£8.75m funding adds steel to St Helens firm’s recovery strategy
Steel manufacturer, Hi-Tech Steel Services, has secured an £8.75m funding facility, which includes a £750,000 Coronavirus Business Interruption Loan (CBILS), from Independent Growth Finance (IGF).
The steel processor, based on Bold Industrial Park, St Helens, required additional working capital to support growth and assist the business during the height of the pandemic.
Hi-Tech Steel Services processes 2,500 tons of strip mill product each month on a variety of equipment.
With roots stemming back to 1992, the company has forged partnerships with independent and multinational customers across Europe. Working largely in the construction, white goods and automotive sectors, its primary customers are multinationals.
With the first lockdown putting much of the manufacturing industry on hold, Hi-Tech Steel was hit with significantly slower demand levels.
To counter the downward trend and to avoid disruption to the business, the company sought out a new funding partner. The purpose of the funding was to support the business through the COVID-19 transition and aid the growth of its sister company, Hi-Tech Resourcing, located in Bridport, Dorset.
Hi-Tech Resourcing’s focus is on aligning to the green agenda, with increased demand for sustainable product development in new markets.
Hi-Tech Steel was introduced to IGF, which has a Manchester office, in October 2020 and the deal was closed in a few short months with the commitment of IGF to get the funding over the line. Funds were raised through a combination of invoice financing and a CBILS loan.
Richard Spielbichler, ABL (asset-based loans) director at IGF, said: “Hi-Tech Steel were looking for an ABL provider that could offer them support pretty quickly.
“We were pleased to see the business stay resilient during a difficult time for their industry. We worked hard to understand the needs of the business and put the business back on a positive trajectory which they are now seeing pre-COVID levels of trade again.
Steve Wells, commercial manager at Hi-Tech Steel, said: “The business was heavily disrupted due to the pandemic. We are now in full recovery mode, with current tonnage levels at 120% of our pre-pandemic average.”
With an increasing focus on green tech across the manufacturing industry, growth and development in this area is paramount for Hi-Tech Steel.
Focusing on sectors that give the company a better growth margin, Hi-Tech Steel is utilising funding to meet its clients’ needs and provide a one stop shop for customers.
