The £35m funding package, which is also supported by Fortis, will be used by Renold to fund working capital as well as the firm’s successful international expansion strategy, and will act as a springboard to a wider refinancing when market conditions are calmer.
Renold is a well-known and highly regarded manufacturer of a wide range of precision engineering products. The principal activities of the group are the manufacture and sale of industrial chains and related power transmission products. The firm, which has a history dating back to 1879, now employs 2,700 people worldwide in 23 countries.
Renold has continued to invest overseas, buying the Hangzhou Shanshui Chain Company to establish a manufacturing base in China, for example. It also has a controlling interest in the L.G.Balakrishnan chain manufacturing company in India, furthering the group's commitment to invest in manufacturing capabilities in low cost countries. Renold now has regional offices in Morristown and Westfield in the US; Coimbatore in India; Shanghai; Melbourne; and Johannesburg, among others.
RBS CIB has had a banking relationship with Renold for almost five years and will continue to support the group’s ambitions and business strategy. The dedicated Manchester-based RBS CIB team, led by Duncan Mayall and John Corker, has worked diligently with Renold and the firm’s management, utilising the international expertise of the RBS Group to help the firm find the right solutions to implement its strategy.
Brian Tenner, group finance director at Renold Plc, said: "We are very happy to have extended the group’s financing facility with RBS CIB until June 2013, and this will help our overall financing strategy. The bank has provided valuable support to the business during our successful recovery from the recession, and I look forward to working with RBS in the future. It has really helped working with a bank with international capabilities and real depth in terms of product and service proposition."
John Corker, relationship director, RBS Corporate & Institutional Banking, said: "RBS is delighted to continue its relationship with Renold, a global firm that the UK can be rightly proud of. We work very closely with Renold and provide a first-class service, and we look forward to continuing to work with them as their financing strategy develops."