TEESSIDE steel company Paralloy has secured a £15 million funding package, enabling it to fulfil the most exports in its 90-year history.

The Billingham firm has opened two additional sites and recruited more than 70 new staff following record demand for exports to North America, the Middle East and Asia-Pacific.

It says it now needs a further 40 additional staff, including engineers, welders and fabricators this year.

Minister for Exports, Mike Freer, announced that Paralloy has secured the funding from Santander UK with an 80% guarantee from UKEF to support its export-led growth.

Robert McGowan, CEO of Paralloy, commented: “This UKEF-backed funding package from Santander UK has enabled us to future proof the business, and provided the working capital to fulfil bigger export contracts.

Read more: The day The Shard was built in North Yorkshire

"It’s truly been a game-changer, and we can now focus on building out our order book even more and hiring the right team to support that.”

Paralloy makes patented steel alloy castings used in high temperature furnaces and exports 95% of what it makes in the UK to 70 overseas markets. Its exports have reached record levels of up to £50 million, and the firm required general working capital to fulfil record demand for its services.

Paralloy is one of only a handful of companies worldwide to produce these steel castings and is a key supplier to the blue hydrogen market, which produces virtually no greenhouse gas emissions and is much in demand as firms across the world transition away from polluting fossil fuels.

As the country returns from coronavirus, the funding package has enabled Paralloy to take on higher value contracts as well as opening the new sites in Teesside, and creating 76 highly skilled jobs locally.

The announcement comes as the UK government is in the middle of its first International Trade Week (November 15 – 19), designed to help businesses learn more about selling globally.

Minister for Exports, Mike Freer MP said: “It’s great to see Paralloy boost its exports, creating more highly skilled jobs in the North East. This support, using UK Export Finance’s General Export Facility, shows how the government can help local companies sell to the world helping to level up and build back better than ever before. UKEF has huge liquidity for exporters to tap into.

"This week’s events will raise awareness of how its financial support can help businesses win, fulfil and get paid for export contracts.”

Mark Ling, Head of Trade & Supplier Finance at Santander UK said: “Paralloy has successfully navigated unprecedented challenges posed by the pandemic, growing its business significantly over the past 18 months."

Ulviyya Huseynova, Export Finance Manager for North Yorkshire, Humberside and Teesside said: “This is exactly what the GEF was designed to achieve: empowering a business to focus on its overall growth and unlock more export opportunities.

"With beginnings in the heart of the UK’s metal industry, Paralloy is now helping to power the fuel of the future with its specialist equipment, and I am thrilled that we could provide the necessary support.”



Keep up to date with all the latest news on our website, or follow us on Facebook, Twitter and Instagram.

You can also follow our dedicated Teesside Facebook page for all the latest in the area by clicking here.

For all the top news updates from right across the region straight to your inbox, sign up to our newsletter here.

Have you got a story for us? Contact our newsdesk on newsdesk@nne.co.uk or contact 01325 505054