Member Article

Cramlington’s Techflow seal bank bond deal

Offshore engineering products outfit Techflow Marine Ltd has secured a pair of bonds under the UK Export Finance (UKEF) Bond Support Scheme.

The performance guarantee bond and warranty bond will aid Techflow’s US $5.8 million contract with the Chinese National Offshore Oil Corporation.

Cramlington-headquartered Techflow has designed and installed an offloading reeling system to support oil movements from ship to ship in China.

Graham Clark, a director of Techflow Marine said; “This Bond Support Scheme initiative bridged a financial funding burden common with performance and warranty bonds with a particularly important new client to Techflow Marine.

“The net cash inflow effect stimulates the company to bid for global business at a greater pace than previously possible in the knowledge that the ‘bond factor’ has been significantly mitigated.”

Techflow Marine Ltd provides a range of specialist products to the offshore oil and gas and marine industries and operates manufacturing activities are coordinated and scheduled to its principle manufacturing locations in the UK as well as sub-contractors in China, Korea, Singapore, USA and Brazil.

Lesley Telford, Barclays relationship director said: “We have built a relationship with Techflow Marine over a number of years and have worked together with the client and UKEF in devising a funding solution which supports the significant export opportunities they now have.

“The facility structure provides a clear indication of how we are committed to supporting our clients with their exporting needs by using innovative products such as those covered under the UKEF scheme. These products can be used to great effect by UK exporters to win contracts abroad.”

Under the UKEF scheme government provides partial guarantees to banks in support of UK exports - typically 80% of the value of the bond.

Jonathan Leonard, export finance adviser, UKEF said: “This is an excellent example of how UK Export Finance can help small and medium sized businesses win business abroad. Thanks to UKEF providing a guarantee to Barclays, Techflow Marine needed less cash to secure the bond and had enough working capital to deliver on the contract.UKEF has made assisting SMEs secure overseas contracts a top priority and I hope to see other companies follow Techflow Marine’s lead.”

This was posted in Bdaily's Members' News section by Tom Keighley .