News: Castings Technology secures significant investment
An £18m investment package is enabling Rotherham-based Castings Technology to accelerate its steep growth trajectory by moving into new premises in Sheffield, enhancing one of the most advanced foundries in the world and the only commercial titanium facility in the UK.
The company produces specialised investment castings from a range of alloys for some of the most demanding advanced manufacturing companies on the planet. The deal supported by Castle Square Corporate Finance, the same Yorkshire advisers who advised them on a MBO four years ago.
Currently based on the Advanced Manufacturing Park (AMP) in Rotherham, the company is moving to its own dedicated 195,000 sq ft production facility on Shepcote Lane in Sheffield.
Chairman, Kevin Parkin said “Whilst continuing to lease the building and equipment from the AMRC was the correct option in 2021 when the Management Buy-Out completed, due to our substantial growth, it is now necessary for the company to move to its own, larger premises and with new, world-class equipment”.
Castings Technology, which celebrated its centenary in 2023, underwent a management buy-out in 2021 which saw MD Richard Cook and Chairman Kevin Parkin take the reins.
Since then, the company has achieved a 225+% increase in sales and significantly increased its skilled staff to more than 100, with an order book that shows no signs of slowing.
When seeking the current investment, the board turned to Kevan Shaw, Managing Partner of Castle Square Corporate Finance, who was key to the successful MBO, who was able to secure an investment facility of £15m from Zachary Asset Holdings for Castings Technology.
Kevan said “I was thrilled to receive the call from Kevin and Richard to manage this investment deal after working with them on their MBO back in 2020/21. We had several interested parties but Zachary Asset Holdings were the best fit. This deal secures Castings Technology’s long-term future with a move to its own facility.”
Robin Haller of Zachary Asset Holdings added “We are extremely excited to partner with Castings Technology and help to support their growth in Sheffield. We believe their skills and technology are world-class and will benefit both the region and the country.”
The new site, formerly a Whitbread Brewery bottling plant, is undergoing a multimillion-pound landlord-funded refurbishment to enable Castings Technology to install its new equipment.
Much equipment is already on order, due to long lead times, such as a new Vacuum Arc Remelting Furnace and Heat Treatment Furnace costing over £6.5m and £1.5m respectively.
Castings Technology has its own Metrology, X-Ray, NDT, and Metallurgical Laboratory on site which complement its world leading processes.
Advertisement
Richard Cook, MD added “We have developed a strong growth strategy, and we will continue to collaborate with our clients and other institutions to help us improve operational efficiencies. The move delivers a sound platform from which Castings Technology can offer continued supply chain resilience to customers’ future and current programmes.”
Castings Technology has had to find new ways of recruiting the best talent and become an employer of choice in the region. It has a sustainable, diverse, and committed workforce and is dedicated to increasing apprenticeship numbers over the coming years.
It is partnering with local schools and the UTC in Sheffield, providing work experience placements and encouraging more interest in manufacturing to develop engineering apprenticeships. It is also a committed partner of the Better Learners, Better Workers scheme run, in conjunction with The Company of Cutlers in Hallamshire, by Sarah Ward, Managing Director of Ambition Unlimited.
Wake Smith Solicitors’ Rebecca Robinson, Director and Head of Corporate, provided legal advice to the management team including dealing with due diligence information requests and negotiating the investment documentation, facilities agreement and security documentation. Mark Cooper of BHP advised on tax matters.
Rebecca Robinson said “We are proud to have supported Castings Technology through this significant funding development. The company has outgrown its facilities and this investment allows it to move forward, and further its potential to become one of the largest Titanium foundries in the world.”
The British Cast Iron Research Association was formed in 1923 and the British Steel Casting Research Association was formed in 1953. These two membership organisations merged in 1996 to become Castings Technology International Ltd.
In 2006, Castings Technology relocated the bulk of its facilities to the AMP after securing EU funding to construct and equip a 54,000 sq ft workshop.
In 2013 ownership of these facilities was transferred to the University of Sheffield where funding was secured to expand the facility to 13,000 sq ft and to house Europe’s largest titanium melting facility.
The new facility is expected to be operational in the second half of 2026.
Castings Technology website
Images: Castings Technology
The company produces specialised investment castings from a range of alloys for some of the most demanding advanced manufacturing companies on the planet. The deal supported by Castle Square Corporate Finance, the same Yorkshire advisers who advised them on a MBO four years ago.
Currently based on the Advanced Manufacturing Park (AMP) in Rotherham, the company is moving to its own dedicated 195,000 sq ft production facility on Shepcote Lane in Sheffield.
Chairman, Kevin Parkin said “Whilst continuing to lease the building and equipment from the AMRC was the correct option in 2021 when the Management Buy-Out completed, due to our substantial growth, it is now necessary for the company to move to its own, larger premises and with new, world-class equipment”.
Castings Technology, which celebrated its centenary in 2023, underwent a management buy-out in 2021 which saw MD Richard Cook and Chairman Kevin Parkin take the reins.
Since then, the company has achieved a 225+% increase in sales and significantly increased its skilled staff to more than 100, with an order book that shows no signs of slowing.
When seeking the current investment, the board turned to Kevan Shaw, Managing Partner of Castle Square Corporate Finance, who was key to the successful MBO, who was able to secure an investment facility of £15m from Zachary Asset Holdings for Castings Technology.
Kevan said “I was thrilled to receive the call from Kevin and Richard to manage this investment deal after working with them on their MBO back in 2020/21. We had several interested parties but Zachary Asset Holdings were the best fit. This deal secures Castings Technology’s long-term future with a move to its own facility.”
Robin Haller of Zachary Asset Holdings added “We are extremely excited to partner with Castings Technology and help to support their growth in Sheffield. We believe their skills and technology are world-class and will benefit both the region and the country.”
The new site, formerly a Whitbread Brewery bottling plant, is undergoing a multimillion-pound landlord-funded refurbishment to enable Castings Technology to install its new equipment.
Much equipment is already on order, due to long lead times, such as a new Vacuum Arc Remelting Furnace and Heat Treatment Furnace costing over £6.5m and £1.5m respectively.
Castings Technology has its own Metrology, X-Ray, NDT, and Metallurgical Laboratory on site which complement its world leading processes.
Advertisement
Richard Cook, MD added “We have developed a strong growth strategy, and we will continue to collaborate with our clients and other institutions to help us improve operational efficiencies. The move delivers a sound platform from which Castings Technology can offer continued supply chain resilience to customers’ future and current programmes.”
Castings Technology has had to find new ways of recruiting the best talent and become an employer of choice in the region. It has a sustainable, diverse, and committed workforce and is dedicated to increasing apprenticeship numbers over the coming years.
It is partnering with local schools and the UTC in Sheffield, providing work experience placements and encouraging more interest in manufacturing to develop engineering apprenticeships. It is also a committed partner of the Better Learners, Better Workers scheme run, in conjunction with The Company of Cutlers in Hallamshire, by Sarah Ward, Managing Director of Ambition Unlimited.
Wake Smith Solicitors’ Rebecca Robinson, Director and Head of Corporate, provided legal advice to the management team including dealing with due diligence information requests and negotiating the investment documentation, facilities agreement and security documentation. Mark Cooper of BHP advised on tax matters.
Rebecca Robinson said “We are proud to have supported Castings Technology through this significant funding development. The company has outgrown its facilities and this investment allows it to move forward, and further its potential to become one of the largest Titanium foundries in the world.”
The British Cast Iron Research Association was formed in 1923 and the British Steel Casting Research Association was formed in 1953. These two membership organisations merged in 1996 to become Castings Technology International Ltd.
In 2006, Castings Technology relocated the bulk of its facilities to the AMP after securing EU funding to construct and equip a 54,000 sq ft workshop.
In 2013 ownership of these facilities was transferred to the University of Sheffield where funding was secured to expand the facility to 13,000 sq ft and to house Europe’s largest titanium melting facility.
The new facility is expected to be operational in the second half of 2026.
Castings Technology website
Images: Castings Technology
0 comments:
Post a Comment