Barrett Steel Limited, the UK’s largest private steel stockholder, has secured an £80 million funding package from HSBC to help the business consolidate its presence at home, as well as grow its operations overseas, particularly in South East Asia and the Middle East.
The Bradford-based steel stockholder and manufacturer will be investing £6 million of the funding in the latest steel processing technology and equipment to ensure that it is meeting customer demands more efficiently.
The financial support has also enabled Barrett Steel to develop new customer and supplier relationships in South East Asia and the Middle East, as well as scope the market for their product in new countries. The company has also set out a five-year plan, aiming to secure customers in new sectors and boost its turnover by £50 million, to £300 million, by 2020.
With 1,030 employees across the Group, Barrett Steel currently works in key cosmopolitan cities like Dubai and Abu Dhabi in the United Arab Emirates (UAE). Since last year, HSBC has assisted the business in developing stronger relationships in the UAE.
James Barrett, group managing director, said: “HSBC has played a major role in connecting us with business prospects in the Middle East. With the new funding in place, we are able to invest in advanced steel processing technology that will drive growth, and focus on maximising commercial opportunities both in the UK and globally to ensure continued progress.
“We are very excited about developing our relationships in overseas markets like Dubai as well as uncovering future prospects for the business over the next few years.”
Peter Helliwell, HSBC’s regional director for large corporates, said: “In recent years, Barrett Steel has transformed its business, investing in the latest technology and improving employee skillsets to optimise efficiencies. The company has revaluated its strategy and, where necessary, have proactively re-aligned to live market conditions.
“Helping ambitious businesses like Barrett Steel to take advantage of global opportunities and explore new markets is vital in helping bolster the UK economy.”
Barrett Steel Group currently has a turnover of £250 million and 200 employees at its Head Office in Bradford.
Anna Robson’s team at DLA Piper in Leeds provided legal advice to Barrett Steel on the transaction, while David Handy at Addleshaw Goddard advised HSBC.