The renowned manufacturer and supplier of aluminium flat-rolled products in the United Kingdom have obtained a £60 million asset-based lending (ABL) facility from HSBC UK to support the expansion of its product range and power its future growth plans.
The metal strips for lithography printing Bridgnorth Aluminium will utilize the funding from HSBC UK to diversify into different markets, driving away from being purely recognised as a lithography specialist to a more multifaceted approach.
Bridgnorth Aluminium was founded way back in 1933 and currently being the largest Shropshire's employer, the manufacturer will commence and supply new aluminium flat-rolled products to the beverage industry for aluminium cans production and to the stockist market. With the plan to enter these high-growth markets, the company expects to increase its annual turnover by 40% in the next five years.
Mark Richards, Finance Manager at Bridgnorth Aluminium, said: "As a business with big ambitions we need make strategic future investments. Over the last 90 years, we have held a well-earned reputation for excellence in the lithography industry which we want to extend into the drinks and retail markets. It’s an incredibly important and exciting milestone for us and we are happy to have HSBC UK as a funding partner to help us on our new journey.”
Mark Lewis, Relationship Director at HSBC UK, stated: "Bridgnorth has all the hard-working characteristics and heritage you’d expect from a long-established Midlands manufacturer, as well as the ability to look to the future through the lens of innovation. This is a pivotal move in the company's history and is set to lay the foundations for a new, exciting chapter in Bridgnorth Aluminium's story."
The fully integrated £60 million ABL facility provides Bridgnorth with a noteworthy rise in liquidity, sanctioning the aluminium company to invest in its future growth ideas in a controlled and structured way.
Sam Owen, Business Development Director at HSBC UK, said: "HSBC UK has provided an innovative and flexible facility that provides both working capital funding and a revolving facility for Bridgnorth's strategic CAPEX plans, by leveraging assets both in the UK and overseas. An uncommitted accordion provides additional scope to extend the facility in future."
Keith Webb, Deputy Regional Director at HSBC UK, added: "The Midlands has long been known as the heart of industrial manufacturing, so it is great to see one of the region’s biggest employers with such a long history evolve and embrace new opportunities. The business is intent on diversifying its core product offering to support its growth ambitions. We wish them the best of luck for the future."
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