A Midland motor importer and distributor is looking for bigger premises after forming a joint venture with China’s largest exporter of electric motors.
Tec Electric Motors has partnered with Shanghai-based manufacturer Techtop, who will take a small stake in the Worcestershire-based company, which will import and distribute the Chinese products to the UK market.
The company, based in Droitwich Spa, experienced a 40 per cent increase in turnover last year to £11 million and plans to at least double turnover again, with the company’s five year budget forecasting sales of around £30 million a year in a market that is worth an estimated £80 million a year.
The company used HSBC’s Invoice Finance facility to achieve its growth and also uses the bank’s Trade Finance facilities to support its import activity, most notably Letters of Credit.
Tec Electric managing director Scott Edwards said: “This joint venture will help us to achieve our goal of over 30 per cent of the electric motor market and in addition to looking for larger space in Droitwich, we are also looking to set up distribution facilities along the M62 and M4 corridors, as well as establishing distribution in Northern and Southern Ireland.
“HSBC’s support has been fundamental to the growth of the business.”
The deal will lead to the company adding £10 million worth of standard stock over the next five years and it is searching for premises of at least 80,000 sq ft to accommodate this growth.
Tec Electric employs 30 staff and plans to grow this to 60 within five years.
Emma Hallam, senior international commercial manager at HSBC’s South West Midlands Commercial Centre, has managed the company’s relationship since 2010.
She said: “Tec Electric Motors has experienced phenomenal growth in a short space of time, which is a testament to the experience and determination of the management team, but also to the company’s financial structure.
“The use of invoice finance in particular has allowed the company to expand at a strong pace.”