Automotive manufacturer Sertec has secured a £20 million funding package from Lloyds Bank Commercial Banking to help fund the relocation of its new head office and investment in new equipment.
The Lloyds team based on Colmore Row arranged the deal for the Coleshill company, which includes a £7 million increase in trade finance facilities to support Sertec’s exposure to tool stamping imports from China.
The finance package also includes term loan and asset finance facilities to fund future capital expenditure projects, and the deal takes the business’ total funding facility with Lloyds to more than £38 million.
Sertec manufactures a range of steel and aluminium manipulation and assembly processes, including transfer and progression presswork, tube manipulation, wire forming, deep drawing, welded and self-piercing riveted components.
The business has an annual turnover of more than £130 million and employs over 1,000 people at its head office and across its network of global operations.
Sertec’s new 120,000 square foot facility on Gorsey Lane, Coleshill, is situated less than a mile from its previous head office.
The majority of the new site is made up of a logistics and warehousing hub, with new state-of-the-art robotic assembly cells being introduced later this year. The remaining space accommodates Sertec’s head office functions, including its commercial, purchasing, finance, HR and IT departments.
The business’ heavy stamping operations will continue to operate from its original site in Coleshill, with the investment in new premises effectively creating additional space for this large scale press function.
Alongside the head office relocation, the funding from Lloyds Bank will also support Sertec’s investment in new presses and automation, enabling the business to increase its specialist presswork and stampings operations for its growing client base, which includes Jaguar Land Rover as its biggest customer.
Martyn Hughes, group finance director at Sertec, said: “In recent years, we have experienced particularly buoyant demand for our specialist presswork and stampings operations and this has led to a need for further investment in our business. Having simply grown out of our head office operation, we needed to relocate to much larger, more suitable premises, whilst retaining a close connection to our head office roots in Coleshill.”
Chris Pennick, relationship director at Lloyds Bank Commercial Banking added: “This is a great example of a UK mid-market business that is continuing to go from strength to strength and generating steady growth across its operations.”