Petford Group secures £8m NatWest backing

Petford Group secures £8m NatWest backing

Dudley-based Petford Group, which specialises in automotive tool manufacturing and injection moulding, has secured £8m in funding from NatWest.

The deal, a £4.7m tooling facility alongside a £2m invoice finance facility and £1m overdraft, is the largest tooling loan to date from NatWest and will create 21 jobs.

The funding will enable Petford to continue growing and support the production of vehicle components for one of its major contracts with a leading British carmaker.

Mel Sinar, managing director of Petford Group, 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.”

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 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 Cashflow.

The cost of tooling can range from £30,000 to more than £1m and the funding period is typically 18-36 months.

NatWest estimates that UK-based car manufacturers require tooling from suppliers to the tune of £500m.