In a further boost for the region鈥檚 resurgent auto industry, it was announced today that the 海角视频鈥檚 sole premium maker and supplier of alloy wheels - Rimstock 鈥 is and the New York-based investment and management firm Current Capital, along with the prominent British businessman David Roberts.
The new owners bring new investment as well as considerable automotive experience to an already thriving business.
Rimstock is a private company so the value of the takeover is not known, but it鈥檚 thought to be one of the biggest automotive supply chain takeover deals in the region in recent years. in West Bromwich, where it has manufactured for almost 30 years. The firm is something of a hidden jewel and a Black Country manufacturing success story. It has subsidiaries in France, Germany and the United States.
The firm makes high quality, lightweight forged and cast alloy wheels, and exports to over 40 countries. Customers include car assemblers, motorsport firms and the defence sector. The firm鈥檚 lightweight forged 16鈥欌 alloy wheels feature on the latest Lotus Elise Cup 250 model, helping Lotus shave vital kilogrammes off the firm鈥檚 weight, thereby improving performance.
Under its Team Dynamics brand, it sells into the aftermarket, and supports a number of major motorsport championships including the British Touring Car Championship.
Stephen Lane, MD and CEO of Rimstock, welcomed the new investment in Rimstock: 鈥淚n addition to supplying alloy wheels from our West Bromwich based engineering plant, to some of the world's most prestigious automotive marques and aftermarket, onshoring much needed innovation is pivotal to our future strategy.
鈥淲ith over half of Rimstock's trading right here in Britain, the much-needed funding will enable our business to manufacture local to its market, and in doing so remain one step ahead of intense competition from the Far East.鈥
The MD鈥檚 comments raise the hope of further re-shoring of production to the 海角视频. Rimstock already operates one of the most advanced design and manufacturing facilities in Europe, and the firm has already secured more space close to its West Bromwich facility to enable expansion.
Rimstock鈥檚 new executive team will be led by David Roberts as Executive Chairman, with Stephen Lane continuing as MD and CEO. A very positive aspect of the takeover is the appointment of two highly respected new Advisory Board members in Glenn Mercer and Jonathan Foster.
Just last year, Rimstock secured over 拢3 million from the Regional Growth Fund to expand production, develop new technology and to create new jobs. In its RGF bid, Rimstock highlighted its goal of developing advanced manufacturing techniques and processes only currently accessible in Europe, Asia and the USA, in turn unlocking markets with new automotive assemblers.
Incoming investor and new Executive Chairman, David Roberts, said he was 鈥渆xcited to work with Stephen Lane, to continue to provide the most advanced automotive wheels to our global customers who are the leading luxury brands in the industry. Rimstock now has strong financial sponsors with a wealth of knowledge in the industry.鈥
The takeover is another sign of the recent revival of the 海角视频 auto industry and the supply chain here in the West Midlands. Over 拢8bn has been invested in 海角视频 auto in the last 4 years, and output has risen by some 60% since 2009. By 2020 the 海角视频 is likely to be assembling more cars than ever before. Local sourcing of components has risen in recent years form around a third to 40%.
Much more, of course needs to be done to reshore production and build capacity (see for our recent research on reshoring in 海角视频 manufacturing and automotive), but Rimstock is a great example of possibilities for 鈥榙oing more locally鈥.
* Professor David Bailey works at the Aston Business School in Birmingham.
