UK Export Finance supports energy transition in Scotland
Bond support underpins first offshore wind contract for Glasgow manufacturer.
PCT Group Sales, a Glasgow-based global manufacturer for the energy sector, has secured a multi-million pound contract to supply cranes to build wind turbines for the new Neart na Gaoithe (NnG) offshore wind farm in Scotland after backing from UK Export Finance (UKEF).
PCT won a global tender with an international engineering company to supply 54 davit cranes for wind turbines that will be installed at the 450 MW offshore wind farm off the Fife coast – PCT’s first renewable energy contract. NnG has recently entered the first stage of construction and will produce enough power to supply around 375,000 Scottish homes, offsetting over 400,000 tonnes of CO2 emissions each year when completed.
PCT is an experienced exporter specialising in the production of lifting devices, including cranes, winches and hoists, with 90% of its revenue coming from overseas business. An international engineering company are the lead contractor for the installation of the wind turbine’s foundations and deck platforms and will ship the cranes, produced by PCT, to Indonesia to complete construction.
The terms of PCT’s contract meant it was required to supply performance and advance payment bonds upfront, which would have placed a strain, currently, on the company’s resources. UKEF backed the deal and provided PCT’s bank with a guarantee for 80% of the bond, allowing the company to retain working capital for its business operations and fulfil the contract.
This follows the Prime Minister’s announcement this week of an ambitious new 10 point plan for a green industrial revolution, which will support up to 250,000 highly-skilled jobs across the UK. The plan will mobilise £12 billion of government investment and spur over three times as much private sector investment by 2030, creating opportunities across Scotland and the rest of the UK. UKEF has also recently appointed an export finance specialist to focus on renewable exports and to support energy transition in Scotland.
Minister for Exports, Graham Stuart said:
The UK has one of the world’s best export credit agencies in UKEF, and Scottish exporters like PCT benefit from the technical skill and deep resources UKEF draws on to support them to win contracts like this. DIT and UKEF are determined to accelerate the transition to clean energy and make sure more Scottish companies can take advantage of the unique support available offered by the UK government.
UK Government Minister for Scotland, Iain Stewart said:
PCT’s offshore wind contract is another example of how businesses can work with the UK Government’s world-leading credit agency, UK Export Finance, to strengthen their position in global markets and boost their exports worldwide.It also highlights the UK’s position as an international leader in renewable energy.
Scottish businesses will be able to benefit from more global trade opportunities once the EU transition period ends through the new Trade Hub in Edinburgh.
Brian Lemond, PCT Managing Director said:
Without UKEF’s support we would have been unable to put the bonding in place, at this time, and couldn’t fulfil the contract. I look forward to working with them as we continue to secure contracts in the renewable energy sector.
Carol Harvey, UKEF’s Export Finance Manager, said:
The success of PCT demonstrates UKEF’s ability to support a range of contracts across a wide variety of sectors. Our bond support scheme continues to play a crucial role in ensuring UK companies can fulfil their export contracts.
Media enquiries: Andy Aston, Head of News and Corporate Communications
Email Andy.Aston@ukexportfinance.gov.uk
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