Petford Group secures new funding

Petford, one of the Black Country's fastest growing manufacturers, has received a £4.7 million tooling facility, alongside a £2m invoice finance facility and £1m overdraft.

This will enable Petford Group, which has its headquarters at Peartree Lane, Dudley, to continue to grow and support the production of vehicle components for one of its major contracts with a leading British car maker.

Mel Sinar, the group managing director, said: "Our company has experienced substantial growth over the last five years. NatWest is clearly committed to the manufacturing sector and has the expertise to understand our business requirements both now and going forward. The flexible tooling funding will allow us to continue to grow and take on further contracts in line with our business aspirations."

Richard Dowen, the bank's relationship director for the Black Country and Shropshire, said: "Petford Group is an excellent example of a true manufacturing business that has not only continued with its core product offering, but also identified new markets to ensure they are well placed to support the on-going development of the automotive sector now and in the future. I am delighted we could support their ambitions."

Ian Fletcher, international trade director at NatWest, added: "This is a great example of how NatWest's tooling facility is helping the automotive sector, which is one of the UK's biggest export industries and therefore extremely important to the UK economy."

The specialist toolmakers last year invested £2.8m in setting up its new Petford Moulding operation in Station Drive, Brierley Hill. All the robotised machines were transferred there from Peartree Lane as its moulding operation had outgrown the Dudley site has enabled it secure many contracts.

The group's management team worked closely with the Manufacturing Advisory Service over several years to secure the funding it needed for its expansion strategy.

The business, which was founded in 1970 by chairman Mick Parr and originally operated from a single unit in Brierley Hill, now employs 140 staff across the two sites.

Already this year the group has invested in three new large machines for both Peartree Lane and Station Drive which will help Petford's ongoing expansion.

Over the years it has diversified into new markets as well as the automotive sector.

The NatWest tooling facility is open to suppliers in the automotive industry to support the manufacture of tools required for the production of vehicle components.

NatWest created the facility because its automotive manufacturing customers highlighted their bespoke funding requirements for tooling, which has a significant impact on cash flow.

The cost of tooling can range from £30,000 to more than £1m and the funding period is typically 18 to 36 months. NatWest estimates that UK-based car manufacturers require tooling from suppliers to the tune of £500m.