Steel manufacturer, Hi-Tech Steel Services, secures a £8.75M funding facility, which includes a £750,000 Coronavirus Business Interruption Loan (CBILS) from Independent Growth Finance (IGF). The Merseyside-based steel processor required additional working capital to support growth and assist the business during the height of the pandemic.
Hi-Tech Steel Services processes 2500 tons of strip mill product each month on a variety of equipment. With roots stemming back to 1992, the company continues to offer high-quality product and service performance. It has forged partnerships with independent and multinational customers across Europe. Working largely in the construction, white goods and automotive sectors, its primary customers are multinationals.
With the first lockdown putting much of the manufacturing industry on hold, Hi-Tech Steel was hit with significantly slower demand levels. To counter the downward trend and to avoid disruption to the business, the company sought out a new funding partner. The purpose of the funding was to support the business through the Covid-19 transition and aid the growth of its sister company, Hi-Tech Resourcing, located in Bridport, Dorset. Hi-Tech Resourcing’s focus is aligning to the green agenda, with increased demand for sustainable product development in new markets.
Hi-Tech Steel was introduced to IGF in October 2020 and the deal was closed in a few short months with the commitment of IGF to get the funding over the line. Funds were raised through a combination of invoice financing and a CBILS loan.
Richard Spielbichler, ABL Director at IGF, commented, “Hi-Tech Steel were looking for an ABL provider that could offer them support pretty quickly. We were pleased to see the business stay resilient during a difficult time for their industry. We worked hard to understand the needs of the business and put the business back on a positive trajectory which they are now seeing pre-COVID levels of trade again.
Manufacturing for the future
Steve Wells, Commercial Manager at Hi-Tech Steel, commented, “The business was heavily disrupted due to the pandemic. We are now in full recovery mode, with current tonnage levels at 120% of our pre-pandemic average. As a result, we were looking for additional working capital to support growth. What impressed me the most about IGF was their professional approach and commitment to close this deal in just two months. It is a testament to how dedicated and thorough the IGF team are.”
With an increasing focus on green tech across the manufacturing industry, growth and development in this area is paramount for Hi-Tech Steel. Focussing on sectors that give the company a better growth margin, Hi-Tech Steel is utilising funding to meet their clients’ needs and provide a one stop shop for customers.