Tuesday, May 21, 2024
HomeInnovationLincolnshire based Autocraft Solutions Group secures £24m funding

Lincolnshire based Autocraft Solutions Group secures £24m funding

Autocraft Solutions Group, the Grantham, Lincolnshire based engineering firm has secured a £24m asset-based lending facility from HSBC UK to fund continued domestic growth and to set up new facilities in Europe and the US. 

Autocraft Solutions Group is one of Europe’s leading OEM partners for the manufacture and remanufacture of outsourced IC engines and EV batteries and counts all the major car manufacturers from Ford, Geely, Volvo, Kia, JLR, Stellantis, Nissan and Aston Martin to the likes of Caterpilla, JCB and LG Energy as clients.

Lincolnshire based Autocraft Solutions Group
Image credit Autocraft Solutions Group

The HSBC asset-based lending facility facility will directly fund growth for Autocraft Solutions Group’s existing UK and European contracts with original equipment manufacturers (OEMs). As part of the expansion plans, the business is projected to increase turnover by more than 50 per cent and to increase its headcount by in excess of 10 per cent.

The HSBC UK funding will also assist Autocraft Solutions in accelerating its expansion plans by replicating its REVIVE facility in Arnhem in the Netherlands at multiple global locations, including Scandinavia, Southern Europe and North America. The first of these locations is expected to open in mid-2025, which will enable the business to grow with existing and new global customers.

As an established OEM supplier Autocraft Solutions say that their unique selling point is in helping customers outsource their non-core operations, saving their clients investment and headaches involved with keeping these operations in-house.

Mike Hague-Morgan, executive director at Autocraft said: “We are growing the legacy of engine remanufacturing, and we’re 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.”

The new REVIVE sites will triage, repair and remanufacture EV battery packs, enabling the business to process 1,400 EV batteries each year. 

Sam Owen, business development director at HSBC UK, 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 financial firepower to boost supply to the growing EV market.”

related: £4bn UK car battery gigafactory plans formally confirmed

Autocraft Solutions Group
Autocraft Solutions Group – image credit Autocraft Solutions Group

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