[Birmingham, Jan 2024] A family-owned Tyseley business which designs, manufactures and supplies cooling, heating and air conditioning products to the transport industry is set for growth with support from HSBC UK.
Grayson Thermal Systems (GTS) will use an eight-figure funding package from HSBC UK to develop three new production lines at its Tyseley factory, including two heat pump lines and a battery thermal management system line. The funding will also be used to modernise its fabrication facility to boost efficiency and increase output.
In line with the Government’s ban on selling new diesel and petrol vehicles by 2035, GTS has spent the past 10 years investing in the development of its product range for electric vehicles (EVs). Since 2020, the Midlands firm has seen a 75 per cent increase in sales in Europe and an 80 per cent increase in North America for its EV product range.
The new funding will allow GTS to increase its production capacity to continue to meet the growing demand, with 76 per cent of the company’s total European revenue now linked to EVs.
The new production lines will lead to a significant increase in staff headcount, with 74 new staff already appointed by the end of 2023. Additionally, GTS’s current staff will undergo training to upskill them so they can use the cutting-edge equipment.
In addition, HSBC US is also providing a seven-figure funding package to support the development of the company’s facility in Indiana through its US business, Grayson Thermal Systems Corp. This business is expected to double its turnover next year to $11M.
Stuart Hateley, Managing Director at Grayson Thermal Systems, said: “Demand for our EV products is continuing to increase significantly, so investing in building up our production capacity has been vital. We supply customers across Europe as well as the US so it was important for us to partner with a global bank with both local and international expertise that could offer us the working capital we need to grow and meet demand.”
Andy Oates, Head of Corporate West Midlands at HSBC UK, added: “Grayson Thermal Systems is an important employer in the West Midlands, and we are pleased to see its headcount grow even further as a result of the new production lines. We look forward to supporting the business, both domestically and internationally, and seeing its US counterpart demonstrate similar success.”
GTS is a market leader in thermal management systems for zero-emission applications including buses, coaches, trains, commercial vehicles, specialist vehicles and stationary energy storage systems (ESS). Starting as a repair shop in 1978, GTS transitioned into a supplier of engine cooling systems in 1997. In 2016, the business diversified its offering to include products for electric vehicles in response to the drive for electrification.
Throughout the transaction process, HSBC UK was advised by Gowling WLG and Avison Young, while GTS was advised by Wright Hassall.
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