The finance package encompasses a £45million asset based lending facility from Lloyds Bank Commercial Finance and £17million of term funding from Lloyds Bank Commercial Banking. Together, these facilities will help the business drive the development, on-going operation and future expansion of its manufacturing plant.
Bridgnorth Aluminium is the only business in the UK, and one of just three businesses in Europe, with the capability to manufacture aluminium for lithographic plates. It has specialist experience in hot and cold aluminium rolling, levelling and finishing, and a growing customer base in key overseas markets, particularly across Europe and North America, including blue-chip corporates such as Agfa, Fujifilm and Kodak.
The business’ purpose built lithosheet rolling mill and stretch levelling production line is housed at its 60 acre site in Shropshire. This state-of-the-art facility, which produces an extensive range of aluminium coils for use on some of the most modern printing plate manufacturing lines in the world, will now be extended as part of the funding deal with Lloyds Bank.
The investment will increase the plant’s capacity to circa 150,000 tonnes per year and will make a significant contribution in helping to drive Bridgnorth Aluminium’s future growth ambitions. The new machinery is set to be operational by the end of 2015.
Established in 2001, Bridgnorth Aluminium has an annual turnover of circa £175million and employs over 300 people at its operation in Shropshire.
Simon MacVicker, Managing Director of Bridgnorth Aluminium said: “Our business has grown considerably in recent years and we needed to expand our existing manufacturing operations in Shropshire. This investment in manufacturing plant meets our current needs and provides us with plenty of capacity to grow our operations in the future, particularly in export markets in North America.
“Despite widespread speculation around the difficulties of raising finance in the current economic climate, Lloyds Bank has worked closely with us to support this expansion, thereby reflecting their belief in our business model and development strategy. Their total solution for our business, with a mixture of term loan and asset based facilities really helps us as it offers flexible support to cope with exchange rate and commodity price volatility as we compete in world markets.”
Sam Owen, Client Manager at Lloyds Bank Commercial Finance, said: “Bridgnorth Aluminium is a well-established specialist aluminium coils manufacturer business, providing a high quality service to customers both here in the UK and in key European and North American markets.
“Asset based lending facilities are ideally suited to companies that rely on working capital; for manufacturers like Bridgnorth Aluminium that have significant export operations it effectively lifts the cashflow restrictions they face due to growth and commodity price volatility, providing the business with the financing it needs to remain active in a competitive industry.”
Murray Stewart, Relationship Director at Lloyds Bank Commercial Banking in Birmingham, said: “The investment in Bridgnorth Aluminium’s existing manufacturing capabilities will have a hugely positive effect on the business and its future ambitions.
“It is a typical example of a UK mid-market business that has evolved over time and generated steady growth in a niche market sector. Businesses such as this are fundamental contributors in driving the UK’s economy and Lloyds Bank is committed to working with them to provide the backing they need to drive expansion and development both here and overseas.”
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