Britain’s leading manufacturer of premium alloy wheels is to build a brand new manufacturing plant following receipt of a £12.4m funding package.
West Midlands-based Rimstock designs and manufactures alloy wheels for several marques worldwide, and supplies over 40 global motorsport series under its Team Dynamics brand.
The finance package agreed with Clydesdale and Yorkshire Banks (CYBG) will see the company develop a new 100,000 sq ft manufacturing plant, which has enabled Rimstock to continue its expansion of its West Bromwich base. Further funding from CYBG will be invested in new machinery and equipment.
Land for the new plant was bought from the local council and the new plant is expected to create new jobs in the area.
Kevin Rimmer, head of manufacturing at CYBG told The Engineer that Rimstock were ‘struggling with their existing bank’ when they were taken on board as a customer during the downturn in 2008. According to Rimmer, the decision was based on the bank’s understanding of the automotive sector and confidence in its overall recovery.
“Rimstock is… expanding rapidly with the growth we’re seeing from OEMs in the sector,” he said. “So we’ve been funding the acquisition of a new site for them, and we’re able to do that based on our understanding of the nominations they’ve got with the larger OEMs. We’ve probably been able to support it at a higher leverage than some of the other banks would have done…simply because we understand the mechanics of the industry.
“They’re delighted with what we’ve done, they’ve continued to grow and we see them as a good example of the type of business that’s doing well in automotive.”
In April 2017, CYBG announced that it is making ‘a minimum of £6bn of lending’ available to UK SMEs from 2017 to 2019.