Pottinger launches UK subsidiary with HSBC support
Posted on 14 Sep 2012
HSBC Commercial Bank has provided a finance package and ongoing banking facilities to support the launch of the UK subsidiary of Pottinger, one of the most well-known producers of agricultural machinery in Europe. Alois Pottinger UK will be responsible for the company's whole product range, including machinery for grassland, soil and seeding, across Britain.
Alois Pottinger is based in Corby, Northamptonshire, and will initially employ 11 people. The subsidiary will import and sell Pottinger agricultural machinery on a wholesale basis to a network of approximately 40 dealers. The company held an official launch event at the beginning of September, where Chief Executive Heinz Pottinger formally opened the UK arm.
Pottinger machinery has been available in the UK market for more than 20 years via the official importer Landmec, which has decided to cease importing agricultural machinery, and gives the UK arm an established platform of £5.5 million in annual sales, which it plans to grow to over £10 million in the coming years.
HSBC has provided working capital and card facilities to support the company's launch in a deal led by HSBC's Birmingham Commercial Centre, and will be the UK arm's main banking partner going forward. HSBC is also Pottinger's main banking partner in the US, Canada and Australia. Additional Commercial Mortgage lending has also been approved to support the purchase of new premises in the UK and Senior International Commercial Manager Adrian L'Enfant led the deal on behalf of the bank.
Pottinger has been in existence since 1871 and employs nearly 1,400 people worldwide. The company recorded a 19% increase in turnover during its last financial year to €282 million. In addition to the UK, direct international sales include Germany, Austria, France, Switzerland, the Czech Republic, Slovakia, Poland and Russia.
Shaun Groom has been appointed General Manager to oversee the UK operation. He said: "At Pottinger we are well positioned to respond to the machinery needs of British farmers and contractors. Offering a comprehensive, innovative range backed up by a strong team in the UK, we look forward to doing business with customers old and new. We have selected Corby as our base because it offers fantastic transport links to the rest of the UK, enabling us to easily visit our dealers and customers."
Pottinger Chief executive Heinz Pottinger added: "The UK is a key market for us, therefore to reflect its importance we have taken the step of forming our own subsidiary. We are a foreign company investing in the UK because we believe in the strength of the market and because of the opportunities it offers. Our motto "More success with Pottinger" is more than just a promise to our customers."
HSBC Birmingham Area Commercial Director Adrian Gill added: "Pottinger is a large multi-national organisation, so we are pleased to support the launch of the company's UK subsidiary, which will create growth and jobs in Corby. The company has ambitious expansion plans for the UK division and we look forward to working with Shaun and his team over the coming years."