Hannon Transport moves into steel business with £5m HSBC investment
AGHALEE firm Hannon Transport has created a new steel distribution enterprise after receiving a £5 million boost.
The expansion - funded by HSBC finance - represents a diversification for the firm.
Hannon Steel was set up in April and already has 10 staff.
And directors Aodh and Adrian Hannon expect it to hit turnover of £4 million in its first year.
It operates from Karl Business Park in Muckamore, near Belfast International Airport.
It supplies a range of steel products including beams, bars, angles and plates.
The HSBC funding has also allowed the Hannons to expand their main logistics and haulage business.
It specialises in the transportation of cut flowers and plants as well as fruit and vegetables, meat, dairy and other goods.
It has purchased an international warehouse in Dublin as well as investing in new office space in Aghalee and new tractors and trailers.
The company - which turns over around £20m a year - also has offices in Rotterdam and Amsterdam.
Managing director Aodh Hannon said: “The success of Hannon Steel to date has shown that our diversification strategy is working.
"As we adapt to best serve our customers HSBC has done the same to meet our evolving company needs. Now we’re in a really encouraging position to realise our ambitions and expand into both domestic and new international markets.”
Northern Ireland area director for HSBC Nial Douglas added: “The Hannon Group diversification strategy is already leading to turnover growth, new jobs and fresh opportunities in the steel industry. The management team has shown a real appetite for expansion and our partnership will help to deliver that in the coming years.
“This deal was led by Chris McQuay who worked closely with the Hannon Group to supply the most suitable finances for their expansion. The bank is committed to supporting the economy in Northern Ireland by providing the right finance to the country’s growing businesses and we are delighted to be working in partnership with them.”
The finance from HSBC was allocated from the bank’s UK-wide £10 billion SME fund.
The fund was specifically designed to rebalance the economy outside of London.
The most recent set of publicly available annual accounts for Hannon Transport show profits of £1.1m on turnover of £20.3m for the year to January 2015.