HSBC UK has provided a £24m asset-based lending (ABL) facility to Autocraft Solutions Group (Autocraft), a Midlands-based engineering company, reported The Manufacturer.
The funding is intended to fuel the company’s growth and expansion plans across the UK and Europe.
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Autocraft, which partners with original equipment manufacturers (OEMs) for the production and remanufacture of internal combustion engines and EV batteries, plans to use the ABL facility to boost its turnover by over 50% and increase its workforce by more than 10%.
The investment from HSBC UK will also support Autocraft in its ambitions to replicate its REVIVE facility, currently located in Arnhem, Netherlands, across multiple international locations.
The new REVIVE sites are designed to triage, repair and remanufacture EV battery packs, with the capacity to process up to 1,400 EV batteries annually.
HSBC UK business development director Sam Owen added: “Autocraft Solutions Group is playing an important role in the automotive sector’s transition to net zero, and this deal provides the business with the financial firepower to boost supply to the growing EV market.”
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By GlobalDataAutocraft Solutions Group executive director Mike Hague-Morgan said: “We are growing the legacy of engine remanufacturing, and we are also at the forefront of EV technology.
“HSBC UK’s global capabilities made the bank an ideal partner to support our next phase of growth and international expansion. Importantly, the bank also shares our passion for green tech and helping our customers in their journey to net zero.”
According to HSBC UK, its ABL product offers funding based on the value of a customer’s business assets through flexible revolving lines of credit and/or term loans tailored to the customer’s requirements.
Earlier this year, Ralawise, an international clothing distributor located in North Wales, secured an eight-figure ABL facility provided by HSBC UK.
