Local firm secures £6m funding

 

The company recently announced it expects turnover to increase by 50% to approximately £40 million after a significant contract win to supply castings for a new model series to be introduced by a European car manufacturer. It has also extended several existing contracts as it gears up for growth, leading to additional shifts at its Buttington Cross Enterprise Park headquarters and a significant increase on its current employee numbers of 150.

 

Castalum Managing Director Keith Brown said: “We have clear plans to grow the business and believe this new contract will be the first of many. We operate from best in class purpose-built facilities, with state of the art automation and lean strategy throughout the organisation. This means we can offer our customers a quality product at a competitive price.

“Having a bank that understands where we are heading and can support our growth is vital. This new HSBC funding package gives us the capacity to support our growth plans, creating new jobs in the Welsh automotive industry.”

Adrian Gill,  HSBC  Birmingham  Area  Commercial  Director, added: “It was important that this deal was completed in a short timeframe and the team worked tirelessly to achieve this target. Castalum is a successful company that has already demonstrated it can achieve impressive levels of growth and I’ve every confidence that it can build on its recent contract win. This business is exactly the type of internationally-focused company that HSBC is well-placed to support.”

 

The funding package consists of invoice discounting, asset finance and working capital facilities.

Castalum is an aluminium diecaster supplying car and truck components to the UK, Germany, Poland, Italy, Canada, Mexico and the Far East. Nearly three-quarters of production is for export, with components going into approximately 30 vehicle lines produced by Aston Martin, BMW, Volkswagen Audi  Group, Ford, Volvo, Mazda, General Motors, Fiat, Renault, Porsche and Mercedes.