Steel company Teesside secures record exports with financial backing
The Guarantee is a UKEF’s General Export Facility (GEF), designed to help UK businesses easily access finance to cover the costs of international trade and help increase export opportunities for businesses across the United Kingdom. Exports Minister Mike Freer today announced that steel company Teesside Paralloy has secured Â£ 15million in funding from Santander UK with an 80% guarantee from UKEF to support its growth driven by exports.
As the country rebuilds better from the coronavirus, the funding has enabled Paralloy to accept higher value export contracts, open two new sites in Teesside and create 76 new highly skilled jobs locally. The company plans to hire 40 more people, including engineers, welders and fabricators this year.
Paralloy manufactures patented steel alloy castings for use in high temperature furnaces and exports 95% of what it manufactures in the UK to 70 overseas markets. Its exports reached record levels of up to Â£ 50million, and the company needed general working capital to meet the record demand for its services.
The announcement comes as the UK government kicks off its first International Trade Week (November 15-19), designed to help businesses learn more about selling globally and connect with industry experts. trade industry. The week will kick off the ‘Made in UK, Sold Globally’ campaign and will feature a series of virtual and in-person events, including daily presentations outlining UKEF’s financial support to exporters.
Exports Minister Mike Freer MP said:
It’s great to see Paralloy increasing their exports, creating more highly skilled jobs in the North East. This support from – UK Export Finance’s General Export Facility – shows how the government can help local businesses sell globally by helping to level up and rebuild better than ever. UKEF has enormous cash flow for exporters. This week’s events will raise awareness of how its financial support can help businesses win, complete and get paid for export contracts.
Paralloy is one of the few companies in the world to produce these steel castings and is a key supplier to the blue hydrogen market, which produces virtually no greenhouse gas emissions and is in high demand as companies around the world are abandoning polluting fossil fuels.
Mark Ling, Head of Trade and Supplier Finance at Santander UK, said:
This UKEF-supported funding program from Santander UK has enabled us to sustain the business and provided working capital to execute larger export contracts. This has really been a game changer, and we can now focus on building even more of our backlog and hiring the right team to support it.
Paralloy has successfully met the unprecedented challenges posed by the pandemic, significantly expanding its business over the past 18 months. The General Export Facility offers crucial support to UK businesses, and we are delighted to be working with UKEF to provide this financing to Paralloy and a growing number of other companies to help them achieve their ambitions for international growth. .
Ulviyya Huseynova, Export Finance Manager for North Yorkshire, Humberside and Teesside, said:
This is exactly what the GEF was designed to do: allow a company to focus on its overall growth and unlock more export opportunities. Starting out in the heart of the UK metal industry, Paralloy is now helping power the fuel of the future with its specialized equipment, and I am delighted that we were able to provide the necessary support.
About UK Export Finance
UK Export Finance is the UK’s export credit agency and a government department, working alongside the Department for International Trade as part of its strategy and operations. Established in 1919, it exists to ensure that no viable UK export fails for lack of private market funding. It provides financing and insurance to help exporters win, complete and get paid for export contracts.
About Santander France
Santander UK is a financial services provider in the United Kingdom which offers a wide range of personal and business financial products and services. As of June 31, 2021, the bank had approximately 20,900 employees and serves approximately 14 million active customers, through a nationwide network of branches, telephone, mobile and online banking. Santander UK is subject to full supervision by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) in the United Kingdom. Eligible deposits from clients of Santander UK plc are protected by the Financial Services Compensation Scheme (FSCS) in the UK.
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