According to a statement on Friday (25 August) from UK Export Finance (UKEF), the government department responsible for issuing loans, guarantees and insurance, Ward received a £9 million loan from HSBC in 2022 which was guaranteed by the department.
Ward, according to UKEF, “used the additional funds to increase the amount of metal for export which is processed and stored at its docks in Immingham and more recently Cardiff”.
“This allows it to load multiple ships simultaneously – each carrying up to 20,000 tonnes of material – and therefore export more metal in less time. In March 2023, less than a year after UKEF unlocked this £9 million financing deal, Ward achieved its highest monthly export sales of metals,” UK Export Finance explained.
This “in part” helped the company achieve “record turnover and international sales in 2023 at £312 million”.
‘Proud’
Tim Reid, chief executive of UK Export Finance, said: “Stories like Ward’s show how UKEF, working with financial institutions like HSBC UK, can unlock new exporting opportunities for firms across the country.
“Backed by the right financing, innovative businesses like Ward are supporting growth and reducing waste in the UK whilst making global supply chains more sustainable – this is something which we are proud to support”.
‘Booming’
The additional funding HSBC UK has helped Ward “expand and meet significant demand for recycled metal from clients in India, Pakistan, Turkey and Egypt,” UKEF explained.
The statement from the government department went on to add that recycling and waste management are “booming sectors”, which also export to a growing international market through exports, “helping this country manage its waste more sustainably while at the same time supporting jobs, boosting trade and helping to grow the economy”.
James Balfour, finance director at Ward, said: “We have seen a phenomenal year of growth since this financing was agreed. Support from UKEF and HSBC UK has allowed us to bring our exporting business to new heights, especially in Asia and the Middle-East. I’m excited to see how our team can build on this success.”
Market
The record turnover comes as some ferrous metal recyclers report a difficult time in the markets in 2023, with low arisings and falling demand hitting prices.
This has been further hit by the fact that prices for finished products in Turkey, one of the largest importers of UK recycled metal, has been falling, which means the price they are willing to pay for scrap also falls.
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