Walsall firm steels itself for growth
Walsall-based steel stockholder and steel mezzanine floor stockist AC Steels, has secured a £6 million funding deal from Royal Bank of Scotland Invoice Finance.
The family-run business will use the funding to re-finance its existing facilities and provide working capital that will allow it to drive forward continued growth, with investment in new machinery and equipment over the next 12 months.
In the last year, business has grown by 15 per cent following the purchase and refurbishment of a 6.5-acre site in Walsall, three years ago and the completion of state-of-the-art manufacturing unit last year, with assistance from NatWest.
Investment in the 20,000 sq ft unit has allowed AC Steels to increase order capacity and will provide space for new metal sheet and laser cutting equipment, enabling the business to complete all major manufacturing processes in house.
AC Steels, which was founded in 2008 by Paul Price, provides a market-leading service to the construction, fencing and automotive industries, via its steel stockholding division. AC Steel also operates a steel mezzanine floor manufacturing division supplying agents across the UK and Europe.
The business, which has grown year on year, employs 65 members of staff, and is on course to turn over more than £25m this financial year. The business expects to create a further 10 jobs in the next 12 months. AC Steels, works with local West Midlands businesses, wherever possible and has a long-standing contract with RK Transport. The Willenhall-based haulage firm headed by Ray Kibble, provides a fleet of 12 wagons to AC Steels, as part of its operations.
Mr Price said: “Over the last decade we have built a reputation as a leading steel stockholder and steel sheet stockist, supplying a range of businesses across the UK and Europe. Our recent investment in a new unit marked a significant milestone in our growth, enabling us to increase production and take on additional staff to meet growing customer demand. The funding from Royal Bank of Scotland Invoice Finance and earlier funding from NatWest leaves us perfectly positioned for further growth, freeing up capital to look at further investments in machinery over the coming year. The overall support the bank has provided has been invaluable.”
AC Steels was introduced to Royal Bank of Scotland Invoice Finance by Alliance Commercial Finance.
Michael Warwood, business development director at Royal Bank of Scotland Invoice Finance, said: “Paul has led a successful family business over the last 10 years and has laid solid foundations for future growth. The finance we have provided will deliver the capital required by the business to continue with its ambitious plans and create new jobs in the process.”
