Somerset firm secures major export contract with UKEF support
Our bond support scheme helped industrial supplier FTI secure a major contract in South East Asia.
| About the transaction: FTI | |
|---|---|
| Region | Somerset |
| Sector | Manufacturing: insulation cladding |
| Export destination | Malaysia |
| UKEF support | Bond support scheme |
Based in Somerset, FTI has been a supplier to oil and gas firms since 1995. As part of a US$8.5 million supply contract for the firm, from Malaysian oil company Petronas, FTI was required to provide US$1 million worth of bonds to secure the contract.
Through our bond support scheme, FTI was able to meet the requirements of the contract. We provided FTI’s bank with a guarantee for 80% of the bond, allowing the company to retain working capital for its business operations. Beyond the immediate value of fulfilling the contract, our support also allowed FTI to take on a subsequent contract with Petronas, awarded in March 2017.
Neil Smallwood, Managing Director of FTI, said:
UKEF was the natural answer when faced with the bond requirements of the contract, which would have stretched our resources. Its assistance has enabled us to double our turnover, land repeat business and increase our footing in the Malaysian market.
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