Leading steel stockholder, processor and distributor, C. Brown & Sons (Steel) Ltd, has exploited the benefits of TRUMPF Financial Services to help secure the acquisition of a TRUMPF TruLaser 3040 CNC laser profiling centre with LiftMaster automation. The purchase enabled the company to replace two existing machines and release valuable floor space.
Headquartered in Dudley, C. Brown & Sons is a family business offering a wealth of knowledge and over 65 years’ experience in steel stockholding and distribution. The ISO9001 accredited company also offers a complete processing service in steel, from decoiling and blanking, through to sheared- and laser-cut piece parts.
C. Brown & Sons entered the laser cutting market in 2002 with the installation of a pre-owned TRUMPF TCL3030, and has since added other pre-owned and new TRUMPF models to its repertoire. However, with the latest generation technology in its sights, the company sought a single replacement machine.
“We shopped around and while we did consider other suppliers, we felt the TRUMPF TruLaser 3040 with 6kW resonator, CoolLine advanced contouring technology and LiftMaster automation best suited our needs,” explains company director, Julian Adkins. “We wanted a machine to help process our thicker gauge orders, 20 and 25 mm thick mild steel, hence the 6kW power source.”
The next step was to identify a suitable finance package and, as Mr Adkins explains, this represented somewhat unfamiliar territory for C. Brown & Sons.
“The business is currently performing very well and we traditionally finance by balance sheet,” he says. “However, due to another very large investment, we felt it more prudent this time around to finance off balance sheet. As a result we went into the finance market and made some enquiries, but found that TRUMPF Financial Services was very competitive.”
Offering customer-independent and unbiased advice, along with a fast credit decision, C. Brown & Sons opted to take an operating lease from TRUMPF. An operating lease is not capitalised; it is accounted for as a rental expense in what is known as ‘off balance sheet’ financing. One of the benefits of this approach is cash flow advantage. A lease has a lower initial outlay and VAT is spread over the life of the agreement.
“It’s our first operating lease but we think it works well for our requirements,” says Mr Adkins. “We will most likely keep the machine for five years and then trade in for another model. Our ambition is to laser cut quicker than we’ve ever managed before, so in all honesty the operating lease appears to be a good way of investing in our future.”
Already installed at the 150-employee, £55 million turnover business, the TRUMPF TruLaser 3040 is profiling thick gauge mild steel 24 hours a day, five days a week. Aside from laser cutting, other value-added processes provided by C. Brown & Sons include shearing, plasma cutting, flame cutting and forming.