Steel group charts growth after £23m funding deal
A STEEL processing business with major operations in the West Midlands is set for continued growth following a £23m refinancing deal.
Acenta Steel is the UK’s leading processor and distributor of hot rolled and bright engineering steel bars. It products are used in construction, rail, white goods and many other sectors.
The £60m-turnover business operates from six UK sites and exports over 40% of its steel to global partners. Its Hot Rolled division is based in Dudley, with its Bright Bar division just a short distance away in Willenhall.
The group has now secured a £23m refinancing deal from HSBC and HSBC Global Receivables Finance.
The refinancing package will allow Acenta to continue to modify its portfolio of highly differentiated products for a range of sectors, including the hydraulics and automotive sectors.
It will also allow Acenta to continue to invest in stock and capital to maintain its position as the number one processor of bright bar in the UK and to provide one of the broadest product ranges of Engineering bar in Europe. Bright bar is precision-finished material for component manufacture in wide ranging and demanding engineering applications such as engine, driveline and suspension parts, hydraulic valves and household goods.
In addition to processing steel, Acenta has a unique vertically integrated supply chain providing stockholding, cutting and distribution facilities from a UK nationwide footprint. It has operations in Rugby, Manchester, Newport, Sunderland, and Southampton.
The refinancing deal will also ensure that the group can continue to deliver its comprehensive range of steel in niche grades and sizes for its domestic customers.
The business also aims to build on its existing international footprint in Europe and the USA and export wider to Mexico, Eastern Europe and Asia.
Colin Mills, Chief Operating and Financial Officer, said: “Long-term partnerships are key to our business model and the wider steel sector. As such, we needed an asset-based lender with strong credentials and a leading international presence. Refinancing with HSBC means we can focus on growing our business in the UK and overseas, with the financial support of a well-connected and established bank.”
Paul Turk, Area Director for Corporate Banking in the Black Country, Shropshire and South West Midlands for HSBC, said: “Our international footprint fits well with Acenta’s international growth plans, meaning we can provide both the connections and insights which will support the business’s continued development abroad. HSBC Bank and HSBC Global Receivables Finance are delighted to be able to provide facilities for such a prestigious local steel business with a global outlook.”
The funding for Acenta was arranged by Gary Riley, Relationship Director for Corporate Banking at HSBC in the Black Country, and Graham Hay, Corporate Manager at HSBC Invoice Finance.
Pictured from left: Graham Hay (Corporate Manager, HSBC Invoice Finance), Tarlok Singh (Chairman and Chief Executive Officer, Acenta Steel), Colin Mills (Chief Operating and Finance Officer, Acenta Steel) and Gary Riley (Relationship Director, HSBC Corporate Banking).