A sealing products manufacturer based in Scunthorpe has secured a seven-figure funding package from HSBC UK to fuel its international expansion, with sights set firmly on the Middle East.
Sealprem, which was founded in 1994 and now employs 26 people, will use the capital to accelerate organic growth, pursue merger and acquisition opportunities, and develop joint venture strategies alongside its private equity owner Red Coast Industries. The company also plans to strengthen its e-commerce capabilities as part of the push. HSBC UK’s SME Fund has committed £15 billion to support innovation and growth among small and medium-sized businesses, with £2 billion of that ringfenced specifically for international opportunities.
The funding marks a critical step in Sealprem’s ambition to expand sales in the Middle East, particularly Saudi Arabia and the UAE, and to serve customers operating between those markets and the UK. The company expects to create new jobs as a result. The UAE already hosts more than 5,000 British companies, and a recent trade deal between the UK and six Gulf states — Saudi Arabia, Kuwait, Oman, Qatar, the UAE and Bahrain — is designed to remove tariffs on 93% of British goods, potentially boosting exports. Businesses in Saudi Arabia and the UAE are pressing ahead with international expansion plans despite regional volatility, with 97% seeing room for global growth, according to recent surveys.
Red Coast Industries’ investment approach
Red Coast Industries, which acquired Sealprem in 2023, was spun off in 2022 from Banvest, a family-run investment group founded in 2014. Banvest invests in public and private markets across North America, Europe, and the Middle East and North Africa, with a particular focus on lower-middle-market businesses in the building materials sector — especially industrial roofing and cladding. Red Coast was founded by brothers Omar and Yossuf AlBanawi. Yossuf AlBanawi is also a co-founder of digital health company Pilleve and has been recognised in Forbes’ 30 Under 30 list.
The acquisition of Sealprem — then known as Premier Sealant Systems — was backed by a multi-million-pound flexible funding package from Shawbrook Bank in June 2023, with US Capital Global acting as debt advisor to Red Coast. The investment house describes its strategy as acquiring lower-middle-market building materials companies and turning them into broader one-stop-shop solutions for the industrial building envelope sector.
Omar AlBanawi, director of Red Coast Industries, said: “Securing funding with HSBC UK marks an important milestone for Sealprem, as we expand our offering into a broader one-stop-shop solution for the industrial building envelope sector. This new banking partnership provides us with a supportive long-term funding structure, greater operational flexibility, and a relationship that is aligned with our international growth ambitions.”
The funding also allows Sealprem to invest in product innovation, stock availability and customer service. Andy Gray, relationship manager at HSBC UK, said: “With strengthened financial footing, Sealprem will be able to continue investing in product innovation, stock availability and customer service. The business is well positioned to accelerate growth across its core manufacturing business, expanding its distribution capabilities and further developing its e-commerce channel. As these offerings expand, the business is well set to serve customers more efficiently across the UK.”
Industry headwinds
The expansion push comes against a challenging backdrop for the UK construction sector, which is forecast to contract by around 2.5% in 2026 because of weaker demand, rising costs and delayed project pipelines. Recent geopolitical tensions in the Middle East have added pressure: energy and raw material costs are rising, shipping routes are disrupted, and lenders have become more cautious, slowing funding decisions and increasing scrutiny. Liquidity is tightening for SMEs, with weak cash flow and high borrowing costs constraining investment. Sealprem’s products — profiled foam fillers, cartridge sealants, fire-rated products, self-adhesive cellular foams, facade membranes and strip sealants — are used across roofing, cladding, glazing, cold store and maintenance applications, making the company sensitive to volatility in construction activity and material prices.
