Caerphilly-based AerFin is the latest business to announce it is expanding following funding from the Development Bank of Wales.
The aerospace and defence business, which was named by the Financial Times as the Fastest-Growing Aerospace & Defence company in Europe 2020, received a seven figure investment by the bank.
AerFin is a global specialist in providing aftermarket support solutions to the aviation industry. Services range from whole aircraft and engine sale or lease through to engine disassembly, storage and distribution of aviation inventory.
More than 200 different airline operators use AerFin for aftermarket support including Finnair. As Finland’s flagship airline, Finnair appointed AerFin in 2020 to manage the sustainable phase-out of retiring aircraft including the A319, the engines of which are dismantled and repaired at AerFin’s 150,000 sq. Ft facility in Caerphilly.
Air France, British Airways and Lufthansa are also customers of AerFin.
The loan from the Development Bank of Wales will provide short-term working capital to fund expansion of end of life programmes for both aircraft and engines in the United States where over 75% of the world’s Ejet airline operators are based, one of the key product lines on which AerFin is focused.
Robert James, chief executive of AerFin, said: “AerFin began operations in 2010 at the peak of the international debt crisis that gripped aircraft lessors, airlines and investors with the aim of drawing on the extensive technical and commercial knowledge within the team to maximise asset residual values in those difficult economic conditions.
“Demand from our customers has seen AerFin create a range of innovative and flexible programs to maximise our in-house engine disassembly, storage and distribution of aviation inventory. The continued expansion of our services will enable us to further grow our aftermarket service solutions as the global economy prepares to bounce back from Covid-19.
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“Strategic inventory stocks are located worldwide to support our customers immediate requirements. This is critical as airlines look to reduce cost, shorten lead-times, lessen environmental impact and improve sustainability. By working with airlines, we can help to reduce the environmental impact of the aviation sector whilst maximising residual value of aircraft and engines.
“The investment by the Development Bank of Wales means that we now have the working capital required to further expand our operations from our base in Caerphilly to the United States where we are well-positioned to capitalise on the recovery of the aviation industry as people start to take to the skies again. “
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Ashely Jones, Chris Dhenin and Navid Falatoori from the Development Bank of Wales worked with AerFin to structure the funding.
Mr Falatoori said: “AerFin benefits from an exceptionally cohesive and technically astute management team who believe in making aviation more sustainable.
“With a highly skilled workforce of 50 based in Caerphilly, Aerfin is a strong company with an impressive track record of delivering turnover in excess of $100m. As the world recovers from the global pandemic, AerFin is well-placed to benefit from airline operators need to maintain their current fleet and reduce carbon footprint, therefore having a positive impact on the environment. Our funding provides the headroom for AerFin to take advantage of stock and asset opportunities as they move into the US market.”