Chinese deal leaves TEC planning for rapid growth

A WORCESTERSHIRE-based electric motor importer and distributor is on the lookout for larger premises after forming a joint venture partnership with China’s largest exporter of electric motors.

Tec Electric Motors, based in Droitwich Spa, has formed a joint venture with Techtop, a Shanghai-based electric motor manufacturer that distributes its products throughout the world. The deal sees Techtop take a small stake in Tec Electric, which will import and distribute the company’s products to the  UK market.

The deal will lead to the company adding £10m worth of standard stock over the next five years to facilitate its anticipated growth.

Tec, which distributes motors for industrial use, currently operates from two premises on Rushock Trading Estate, which combined quates to 35,000 sq ft. It is searching for premises which offer at least 80,000 sq ft to accommodate the company’s future growth plans.

The company experienced a 40% increase in turnover last year to £11m and  plans  to  at  least  double  turnover  again  going forward, with the company’s  five year budget forecasting sales of around £30m a year.

Tec was formed by Scott Edwards, Tina Edwards and Gareth Richardson in 2006 following the management buy-out of the electric motor division they ran for a major consumer-focused white goods manufacturer.

Managing director Scott Edwards said: “This joint venture will help us to achieve our goal of over 30% of the electric motor market and in addition to looking for larger  pace in Droitwich, we are also looking to set up distribution facilities along  the  M62 and M4 corridors, as well as establishing distribution in Northern and Southern Ireland.”

The company uses HSBC’s invoice finance facility and trade finance facilities.

Emma Hallam, senior international commercial manager at HSBC’s South West Midlands Commercial Centre, said: “Tec Electric Motors has experienced phenomenal growth in a short space of time, which is a testament to the experience and determination of the management team, but also to the company’s financial structure.

“The use of invoice finance in particular has allowed the company to expand at a strong pace.”