The Oxalis Group, a Warwickshire-based manufacturer of explosion protected safety systems, has secured asset finance from HSBC with the help of a government RGF grant to purchase advanced technology Mazak machine tools, enabling the group to substantially increase production capacity from its newly opened global research, manufacturing and distribution centre in Stratford-upon-Avon. Under the arrangement, HSBC is providing equipment finance funding of £124,800, with a RGF grant of £31,200.
In addition, the purchase of the new equipment will enable the Oxalis Group to extend its product range resulting in an increase in employee numbers as the group looks to increase turnover by nearly half. The Oxalis Group relationship is managed by Tom Brothwell, Senior International Commercial Manager with HSBC’s Coventry and Warwickshire Commercial Centre.
The Oxalis Group was founded in 2009 by Rob Whorrod having had many years experience working within global oil and gas markets. Rob explained that the company designs, certifies & manufactures a range of explosion protected and safe area surveillance and monitoring, lighting, electrical and communications products for use in potentially hazardous environments. Such specialised equipment is used by a variety of industries such as oil and gas, aviation, defence, marine and petrochemical. A large percentage of the group’s business is conducted internationally, predominantly with customers in Northern Europe, South America, The Middle East, Africa and Asia Pacific.
Peter Edgar, Oxalis Group’s Finance Director said: “This new high performance machinery will help us move to the next level by improving our efficiency and reducing our manufacturing costs. We are actively expanding our product range and broadening the services we offer to our customers around the world. We are a fast-growing, forward-thinking business that wants to stay ahead of the competition and this investment will enable us to do this.”
HSBC’s Midlands Regional Commercial Director Roy Harris added: “Oxalis has a dynamic management team which has effectively developed a multi-million pound, global company in a short period of time. HSBC’s Assisted Asset Purchase Scheme is designed to help businesses such as the Oxalis Group, that want to invest in assets and to take on new staff, or secure existing jobs. I would urge other businesses in a similar situation to get in contact with us to discuss whether the RGF scheme could support their future plans.”
Conservative MP for Stratford-upon-Avon Nadhim Zahawi welcomed the investment. He said: “It’s fantastic to see another Stratford business growing and taking on more staff, and all the more so to see them using the Regional Growth Fund to do it. It’s important to remember that the £2.4bn RGF isn’t just for large businesses, but that small and medium businesses can also access RGF funded grants through banks like HSBC.”
The RGF is a £2.4 billion Government scheme operating across England from 2011 to 2015. It supports projects and programmes that lever private sector investment to create economic growth and sustainable employment. HSBC has agreed to facilitate up to £25 million of the fund via its ‘Assisted Asset Purchase Scheme’ to support small and medium-sized businesses that are purchasing assets such as machinery and vehicles in order to grow. Qualifying businesses with up to €50 million turnover can receive additional funds of up to £500,000 to put towards the acquisition of assets, which create or safeguard employment when the purchase would not ordinarily go ahead without RGF support.
