Tekmar Energy (Tekmar) has secured a £1.6 million loan to fund the bonds required to secure contracts worth £15 million in the offshore wind sector in the UK and Europe.
The company has grown rapidly in recent years by focusing on innovative cable protection systems and earlier this year moved to a new 75,000 sq. ft. manufacturing facility on Aycliffe Business Park.
While Tekmar operates in a range of sectors, the offshore wind and oil and gas sectors are a key focus and it has completed work on a number of contracts with large European energy companies such as Statoil, Statkraft and Dong Energy.
FW Capital worked closely with Barclays and the company’s shareholders to structure a financial package to support Tekmar’s continued growth.
Explaining the impact of the loan from the Tees Valley Catalyst Fund on the company’s future, Sue Hurst, Tekmar’s Finance Director said: “The Tees Valley Catalyst Fund has provided essential support in our growth plans and our ability to take on new contracts. We are regularly asked to provide performance bonds and warranty bonds, particularly for our larger offshore wind contracts, and FW Capital engaged with us, working with our bank and investors, to provide essential support in securing this work.”
Tekmar has been designing and manufacturing bespoke cable protection solutions for nearly 30 years. Today it has well-established research and development capabilities and has been ‘first to market’ with products like TekLink and TekTube.
With the offshore wind sector set to provide massive opportunities for companies in the North East in the coming years, Tekmar hopes to build on recent successes and continue to act as vanguard for the region.
Commenting on the investment FW Capital Investment Executive, Chris Johnson said: “Tekmar is well-established business on an exciting growth path. The company is a market leader with an excellent reputation, innovative products as well as a wealth of specialist knowledge and expertise.
“Tekmar operates in a sector with huge future potential and is really is flying the flag for the North East. Winning these contracts is excellent news for the company, its employees and local suppliers. I’m pleased that the loan from the Tees Valley Catalyst Fund has played a key role in this.”
The Tees Valley Catalyst Fund was conceived by Tees Valley Unlimited (TVU), the Local Enterprise Partnership for the Tees Valley to provide companies in the Tees Valley with the finance to grow and prosper. In October 2015 the fund was widened to businesses across the North East and in parts of North Yorkshire.
Barclays Relationship Director, David Collins said; “Tekmar is a market leader operating a state of the art manufacturing facility to meet the needs of the changing oil and gas and renewables industry. As they continue to secure contracts in both the UK and overseas this deal has secured further growth and jobs for the North East and we look forward to supporting the company as they continue their growth strategy.
Tekmar has numerous ISO standards and prides itself on its high service standards. It provides and complies with the highest quality, environmental, health and safety standards.