Refractories Exports firm gets crucial bank help

Mar. 26, 2010
BANK support for a 210-year-old manufacturer has played an essential role for its exports.
Parkinson-Spencer Refractories Ltd, which has always been on the same site in Holmfield, Halifax, exports its refractory products for the container glass industry all over the world.
Its customers include container glass manufacturers who make soft drink bottles, perfume bottles and wine bottles by the millions.
It is a fairly stable industry compared to many others, according to finance director John Caswell, and it is this which has seen it continue to do well.
"We are not as cyclical as other manufacturers it's an even trade," he said.
"The fact that we trade all over the world also helps."
Exports now account for 85 per cent of the business, trading across the globe, stretching from America and Europe all the way to Australasia.
"This wide spread of markets has helped maintain business in the recession," said Mr Caswell.
The company has had a long-standing relationship with the local HSBC bank team, which provides it with dollar and euro current accounts as well as sterling.
Mr Caswell said managing foreign exchange risks has been an important support for the firm's exports, including advising on shielding currency and default risk by providing forward sales of foreign currency and policing letters of credit.
"The provision of these foreign exchange facilities is a crucial part of the business, especially when large contracts are being negotiated and manufactured," said Mr Caswell.
Often contracts have long lead times, as much as 12 to 18 months, and the bank's foreign exchange services protect the company from exchange risk, especially with fluctuating currency rates.
David Menaghan, international commercial manager for Calderdale and Kirklees, said: "It takes the risk out of export orders and gives them some certainty.
"It's really good to be associated with such a historic company."
The company, which employs 88, continues to develop its products to keep up with changing markets and technologies.
The family business is now run by its seventh generation, managing director David Parkinson, with his daughter, Joanne, also working there in the exports department.
It started with the mining of fireclay, using it as refractory material for the melting of glass, and it has continued to solely serve the glass industry.