Since its launch, the Tees Valley Catalyst Fund has unlocked contracts for local businesses across the North East worth more than ten times the loan value, according to the latest figures.
Managed by FW Capital, the Tees Valley Catalyst Fund has invested £16.8m, helping firms win £193m of business in total.
The pioneering £10million fund is designed to help companies bid for work and is backed by the Government’s Regional Growth Fund. It provides loans for Performance and Warranty bonds and Advance Payment Guarantees, which provide a financial guarantee to a client that a supplier will deliver on time and to standard.
FW Capital figures show around 75% of the fund investment to date has helped manufacturing and construction businesses bidding for contracts.
Of this investment, around £9m has been provided to companies delivering renewables, oil and gas, and energy contracts.
Now FW Capital is urging more companies in these industries to come forward to take advantage of the fund, which can help firms successfully tender for lucrative contracts.
One business to benefit is Thornaby-based Process Control Equipment Ltd (PCE), which has recently completed a multi-million euro contract in Spain.
PCE, which specialises in the supply of industrial valves, actuators, instrumentation, tubing and fittings for the, oil, gas and petrochemical industries, secured a £300,000 loan from the Tees Valley Catalyst Fund in 2018.
The PCE project, which involved building a new part of a major Spanish oil refinery, was successfully completed six months ago.
FW Capital has long been an investment partner of PCE. In 2014, PCE became the first company to benefit from the fund when it was awarded a performance bond loan worth £1.1 million to enable it to secure three significant contracts worth in excess of £10million.
PCE’s successful tenders saw it work on the multibillion-dollar Sadara project, comprising the construction and operation of a world-scale integrated chemicals complex in Saudi Arabia.
Ben Williamson, Finance Director at PCE, said: “This was a huge project and it wasn’t straight forward but FW Capital worked with us to help shape the funding to the project requirements.
“The FW Capital team is very pragmatic to work with. They are friendly, approachable, and have a great can-do attitude. We’re very grateful to them for their continued support.”
Tees Valley Mayor Ben Houchen said: “This is a fantastic fund that is helping companies in the Tees Valley win business - helping to build the high growth, high wage, low welfare economy we all want to see. Since the launch of the fund there’s been zero defaults, this shows the excellent ability of local companies to deliver contracts on time.
“In the last year a host of offshore and renewable energy companies have announced major investments in our region, transforming the Tees Valley into a centre of excellence for these sectors.
“The fact that over 50% of the companies making use of the fund are delivering renewables, oil and gas, and energy contracts shows how important these sectors are to our economy.
“I would encourage any company that thinks the fund might be able to help them secure more business to apply right away.”
Allison Routledge (pictured), Investment Executive at FW Capital, said: “These latest figures show how the Tees Valley Catalyst Fund is backing local businesses to win major contracts worth around ten times the value of the loan. We would urge any companies that would like to discuss funding to get in touch to see how we can help them.
“We are delighted to support PCE in the successful completion of this major new contract. We’ve built a successful relationship with the team which is testament to our long-term approach of working with the businesses we support.”