Member Article

Tees Valley Unlimited fund set to expand throughout the North East

The Tees Valley Unlimited fund which helps companies bid for contracts, creating and sustaining jobs in the area, is being expanded to outside the Tees Valley area.

The £10 million fund, the first of its kind in the UK, was launched in Tees Valley to provide security for performance bond guarantees, which offer a financial guarantee to a contractor that a supplier will deliver on time and to standard.

Backed by the Regional Growth Fund, the Tees Valley Unlimited (TVU) initiative gave Tees Valley companies the ability to bid for large commercial contracts, opening up new markets and opportunities and helping to further strengthen the local economy.

Following its success, TVU, the Local Enterprise Partnership for Tees Valley, is extending the fund so it is accessible to firms across the whole of the North East.

Performance bonds can cover a number of sectors, although generally cover high value products and are common in the oil and gas, construction, advanced engineering and offshore wind sectors.

One company to recently benefit is award-winning engineering company Wilton Engineering Services Ltd, of Port Clarence, Stockton, which recently completed a £33 million project for the world’s largest independent oil and gas exploration and production company, ConocoPhillips.

It has secured a £1.2 million loan from the Fund to finance the project’s warranty bond with Lloyds Bank.

Established in 1994, Wilton is a specialist provider of services including design and consultancy, fabrication, coatings and site services to the offshore and marine industry.

TVU managing director, Stephen Catchpole, said: “The fund has proved to be an effective and efficient catalyst to Tees Valley companies wanting to bid for contracts.

“It has caught the attention and imagination of businesses outside Tees Valley and now the scheme’s geographical footprint is being extended outside the area.

“Wilton Engineering Services is a company that Tees Valley truly can be proud of with a track record of making its mark at home and abroad.

“The award to Wilton Engineering Services demonstrates how Tees Valley Catalyst Fund unlocks business opportunities and enhances companies’ capacity to deliver growth.”

Managing director, Bill Scott,said: “Wilton Engineering Services has a long and established reputation in the Tees Valley onshore and offshore energy sector.

“We’re proud to have been providing specialist high-quality services to numerous key Tees Valley industries for more than 20 years.

“With the Tees Valley Catalyst Fund backing we’ve been able to move away from using our working capital to cover warranty bonds and have been able to invest in the business to improve our facilities and resourcing.

“We’re now well-placed to bid for more contracts in future.”

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