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Publish Date : 26-Mar-2014

A fund that supports North-East firms bidding for work made its first loan, helping to secure contracts valued at L10 million.

The Tees Valley Catalyst Fund, spearheaded by Tees Valley Unlimited is the first of its kind in the UK, helping mainly small and medium- sized companies to bid for big contracts.

The first to benefit from the scheme is Process Control Equipment, close to Stockton, which specialises in the supply of actuators, industrial valves, and controls for the oil, gas and petrochemical industries.

Managed by fund manager FW Capital, the L10 million funding pot is backed by the Regional Growth Fund, and gives loans for performance bond guarantees – a financial guarantee to a client that a supplier will deliver to standard and on time.

TVU hopes the catalyst fund will unlock almost L700 million of extra work and support 1,440 Tees Valley jobs over the next ten years.

PCE secured three contracts, worth over L10 million, to provide the multi-billion dollar Sadara project, which involves the operation and construction of a chemicals complex in Saudi Arabia.

The Thornaby firm been awarded a performance bond loan valued at L1.1 million.

The PCE's managing director, Barry Jackson, said, "This fund is a boon for businesses as it opens up opportunities and removes barriers. The loan means that we have not had to tie up a substantial amount of our working capital and as a result we will be able to be more adventurous and ambitious as we bid for future work."

Barclays Bank and accountants Co LLP and Clive Owen advised on the deal.

"This first investment shows how a trailblazing scheme which we developed to fulfil a pressing business need, can make a tangible difference to Tees Valley companies. TVU is committed to helping overcome
barriers that prevent local companies from securing work that allows them to grow, take on new staff and expand their customer base," said Stephen Catchpole, managing director of TVU.

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