13/06/2017
NPIF engineers first Tees Valley investment
The Northern Powerhouse Investment Fund has facilitated
£250,000 worth of debt funding to engineering firm ENEX Group,
marking NPIF’s first investment in the region since it was launched
earlier this year with support from the Tees Valley Combined
Authority. The investment was made by NPIF – FW Capital Debt
Finance, an NPIF product fund managed by FW Capital Limited.
Teesside-based ENEX designs, manufactures and supplies
Mechanical Safety Interlocks and Process Safety Systems to the oil
and gas industry. It has recently completed the development of a
‘Patent Pending’ ENEX i-LOCK product range with leading-edge safety
features, providing a greater level of safety and reliability to
other available mechanical interlocks. The investment will help the
company formally launch this new product to the market and expand
in the North East of England.
ENEX is also in the process of carrying out further developments
on a series of other safety products to help clients overcome plant
operational restrictions.
ENEX is led by managing director Wayne Hodgson and employs five
staff. On the back of its planned growth, the funding will
help the company create 16 new jobs in the Middlesbrough area over
the next three years.
Keith Charlton, Investment Executive at NPIF – FW
Capital Debt Finance, said: “ENEX is led
by a fantastic team, with a great track record and is very
experienced in pipeline operations and mechanical interlocks. Wayne
has previously built-up businesses in this sector in both the UK
and the Middle East. Through this he has established a
strong network of contacts in key territories for the business.
This will add tremendous value to the company’s development as it
looks to target growth both in the UK and internationally.”
Wayne Hodgson, managing director at ENEX
Group, added: “I am delighted to have completed a
deal with Northern Powerhouse Investment Fund & FW
Capital. After our initial internal investment of £1m during
the R&D, design, testing and production set-up stages, we were
introduced to the fund at a time when it was tricky to obtain
traditional funding. We are now in a much stronger position with
the £250,000 investment; providing working capital requirements to
meet the demand from our global customers.
“The ENEX i-LOCK is the next generation of products and the
industries safest. We made the decision to have complete production
in the UK after initially investigating manufacturing in the Far
East. Based on our extensive development and design
innovation, we can manufacture quicker and cheaper here in the
North East than overseas.”
“We are constantly developing new products to ensure we continue
to be a major game changer in the global Mechanical Safety
Interlocking Industry whilst maintaining our commitment to using
local North East suppliers.”
Grant Peggie, Director at British Business
Bank, said: “This first Teesside investment represents a
significant milestone for the Northern Powerhouse Investment Fund,
and demonstrates our commitment to support growing businesses in
the Tees Valley.
“ENEX is precisely the type of company that we sought to help
finance when we launched the Northern Powerhouse Investment Fund in
February. “
Paul Booth, chair of Tees Valley Local Enterprise
Partnership and Tees Valley Combined Authority Cabinet Member,
said: “This is fantastic news For ENEX Group and for the
Tees Valley economy.
“This stream of funding can make a tangible difference to
businesses, as is demonstrated by the growth in sales and job
creation ENEX is expecting. I would encourage other companies to
explore the opportunities the Northern Powerhouse Investment Fund
offers.”
Operating from the British Business Bank’s Sheffield head
office, the Northern Powerhouse Investment Fund provides a mix of
debt and equity funding (£25,000 to £2m). It works alongside 10
Local Enterprise Partnerships (LEPs), the combined authorities and
Growth Hubs, as well as local accountants, fund managers and banks,
to support Northern-based SMEs at all stages of their
development.
The Northern Powerhouse Investment Fund project is supported
financially by the European Union using funding from the European
Regional Development Fund (ERDF) as part of the European Structural
and Investment Funds Growth Programme 2014-2020 and the European
Investment Bank.
For more information about Northern Powerhouse
Investment Fund, please visit www.npif.co.uk.
