Cambridge manufacturing firm secures contract in China with UKEF support
Hi-tech manufacturer SG Controls used government contract bond support to export to China.
| About the transaction: SG Controls | |
|---|---|
| Region | Cambridgeshire |
| Sector | Manufacturing: optical fibre equipment |
| Export destination | China |
| UKEF support | Bond support scheme |
SG Controls took on a contract worth more than £4 million to manufacture optical fibre production equipment for a company in China. While the buyer offered a down payment, it required a performance bond as security that SG Controls would deliver. Paying for the cash deposit required for the contract bond would have made it difficult to obtain the working capital necessary to fulfil the contract.
We were able to step in and provide an 80% guarantee under our bond support scheme. This ensured Barclays could issue the contract bonds to SG Controls’ customer without such a large deposit requirement, allowing the company to take on and fulfil the contract.
Ian McNulty, managing director of SG Controls, said:
As for any business, revenue growth is one of our primary objectives, and UKEF support has played a significant role in helping us achieve record growth following the original contract. As busy engineers, we appreciated the minimal administration required to access support that’s been invaluable to the company, and the wider industry.
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