Mechatherm secures major contract in the Middle East
UK Export Finance helps industrial engineering manufacturer secure an order to Bahrain.
| About the transaction: Mechatherm | |
|---|---|
| Region | West Midlands |
| Sector | Manufacturing: industrial engineering |
| Export destination | Bahrain |
| UKEF support | Bond support scheme |
Mechatherm provides equipment for the aluminium and other non-ferrous industrial sectors. As part of a deal with a company in Bahrain, Mechatherm needed to provide an advance payment guarantee, as well as a performance bond from its UK bank.
We offered Mechatherm’s bank, Barclays, guarantees for 80% of the value of both bonds under our bond support scheme, freeing up cash the company needed to deliver. As a result, Mechatherm successfully secured a multi-million dollar contract, significant within the context of a challenging period for the aluminium industry, as well as secure its reputation as a quality supplier in the region.
Chairman of Mechatherm International Limited, Andrew Riley, said that:
Without the UKEF guarantee, we simply wouldn’t have had the financial flexibility to afford the deposit required of us and we would have been forced to turn the contract down. We’re extremely grateful for the support given to us by UKEF and the fact that we were able to take on this order has been a great success for the company.
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