Derby-based Norton Motorcycles (UK) Ltd, the iconic British bike manufacturer, has received £3 million in new funding from Santander Corporate & Commercial to support the firm’s development of its new Norton V4 SS and V4 RR bikes. The funding will directly result in around 40 new staff being hired.
Chief Executive Stuart Garner brought Norton back into production with a range of bikes in 2010 and Santander has funded the company since inception. Norton presently manufactures around 500 units per year of its core 961 Commando range from its premises at Donington Hall in the East Midlands and exports across the world.
All bikes are hand built using traditional techniques combined with cutting-edge technology. Over the last 18 months Norton has developed an all new 200bhp 1200 cc V4 engine and chassis which form the basis of the new Norton V4 SS and V4 RR models. The firm is also planning on building a light weight 650cc bike for 2017/2018.
The limited edition 200 unit V4 SS are all pre-sold and so far over 250 of the V4 RR model have pre-sold. Production is due to commence in summer 2017 and alongside existing facilities provided to the group, Santander’s new working capital will facilitate the build-up of parts and the hiring of c.40 skilled technical staff to meet the strong customer demand for the product.
Tom Gray, Partner in the Corporate Finance team of Fraser Brown, acted for the bank in this latest round of funding.
Stuart Garner, Chief Executive, Norton Motorcycles (UK) Ltd, said: “Santander has been able to provide an incredibly flexible suite of banking facilities that fully suits our needs. Having developed and pre-sold a huge number of bikes, we needed the funding to be readily available to pay for tooling, stock and people to allow production to move from 40 bikes per month to in excess of 130 bikes with effect from summer 2017. The simplicity of the Santander facility met our requirements exactly.”
Steve Young, Relationship Director, Santander Corporate & Commercial, said: “We are absolutely delighted to be able to support the continued success of this iconic UK manufacturing brand. Norton is producing world-class bikes with a global customer base and stands as a great testament to the quality and renaissance of the UK manufacturting sector. Santander is focused on supporting UK manufacturers, particularly with regards to exporting, as we passionately believe that the UK can be a manufacturing powerhouse.”