Forgings, Flanges & Fittings (FFF), established in 1998, is a family owned Perth engineering business that specialises in the supply of specialist steel products for the oil & gas, mining and heavy engineering industries in Australia and internationally.
FFF secured an annual contract with Queensland Alumina Limited (QAL) for the provision of 27,000 speciality tubes, which are used in heat exchangers by QAL to process alumina for export.
The tubing required under the contract is manufactured offshore in China, with quality control imposed by FFF, which has a chemical engineer and full time staff on site at the China facility to manage the production process.
While FFF’s bank, ANZ, was supportive of this contract, it required 100% cash security before it could provide the bank guarantee that FFF needed to fulfil its contractual obligations.
This would have tied up precious working capital, which FFF needs available to secure new contracts as they arise, and so FFF approached us for help.