UKEF helps Durham firm invest in international success
UK Export Finance (UKEF) and Natwest partner to help Mill Masters International access the cash it needed to grow its overseas sales.
| About the transaction: Mill Masters International | |
|---|---|
| Region | Durham |
| Sector | Manufacturer: Automotive machinery |
| Export destination | Spain |
| UKEF support | Bond support scheme |
County Durham’s Mill Masters International Ltd (MMI) manufactures machinery used in heat exchange applications for the automotive industry.
MMI’s rapid sales growth has required investment in its manufacturing capability, meaning that working capital has been restricted. When it won a significant £0.5 million contract from an established customer in Spain, it required an advance payment from its customer in order to finance the manufacture of the order.
In return for the advance payment, the buyer required a bond from MMI’s bank, Natwest. Typically, issuing the bond would require a deposit from the exporter, putting further pressure on cashflow. By working with its bank and one of our regionally based export finance managers, MMI found a solution. We provided the bank with a guarantee, ensuring that the bank had the security to issue the bond without requiring a deposit from MMI. This allowed the exporter to channel the funds into the manufacturing process.
Peter Chappell, Business Manager at Mill Masters International, said:
The support from UK Export Finance and Natwest was instrumental in allowing us to exploit a significant export opportunity with a valued customer at the same time in investing in our manufacturing capability. We have a strong pipeline of business and value the combined support UK Export Finance and Natwest can offer us to build our success in future.
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