Two West Midlands firms are the first to benefit from an initial £25 million which has been set aside by RBS and NatWest to specifically support the automotive industry.
13 Apr 2015
Launched in 2014 in response to feedback from the UK Automotive Council and the automotive supply chain, RBS Tooling Finance was developed to provide funding assistance to support sector growth. Financing tooling contracts for the manufacture of vehicle component parts can prove expensive and lengthy so automotive suppliers in particular stressed the need for funding in incremental stages.
Among the first in the UK to take advantage of the scheme are Kidderminster-based DMS Chromium Plating Limited and Grainger & Worrall, located in Bridgnorth.
DMS specialises in the electroplating of injection-moulded plastics and is a supplier to major original equipment manufacturers (OEMs) UK wide. With a headcount of 100, the business has banked with RBS for seven years.
Chris Sharpe, managing director, said: “I have always appreciated the expertise that RBS holds in terms of our sector; they understand us and our needs. We are a Tier II supplier which ultimately supplies in to JLR and this facility effectively provides us with an additional funding avenue.
“We have borrowed an additional £250,000 which will help us purchase the specific tooling required in our manufacturing process, taking pressure off vital liquidity going forward.”
Grainger & Worrall employs over 500 people and is a casting technology company encompassing up-front engineering, precision machining and consultancy. The business also produces its own tooling.
A new project with a major car manufacturer saw Grainger & Worrall take up RBS Tooling Finance. Edward Grainger, executive director, said: “We have banked with RBS for over 25 years and so our relationship is a long-standing one.
“On understanding more about the Tooling Finance proposition, it immediately appealed to us and met our needs. We work with a lot of OEMs and therefore will find this incredibly useful.”
Richard Hill, head of automotive and manufacturing at RBS, commented: “The launch of the RBS Tooling Finance was a solution to help the UK’s supply chain fulfil its potential. I am delighted to see businesses now begin to benefit from this funding stream, particularly in the West Midlands where the automotive sector has such a strong presence.
“I am proud to know that through the scheme we are supporting our customers’ growth, like DMS and Grainger & Worrall, through efficient working capital management.”
Michael Mychajluk, supply chain & external engagement manager for Jaguar Land Rover, added: “We have been working in collaboration with RBS through our joint actions in the Automotive Council. The automotive industry's requirements are so specific and we are delighted with the resulting Tooling Finance proposition.
“The UK supply chain is critical for JLR and there is definitely an appetite for Tooling Finance as this RBS proposition has proven. It is to the credit of the British Banking Industry as a whole that they have listened to our needs and delivered new products in such a timely manner.”