Founded in 1967, Billingham based Paralloy secured a £2m facility from the Tees Valley Catalyst Fund in early 2020.
Paralloy, who employ in excess of 200 people, are a leading global manufacturer and supplier of engineered components for furnace applications turbines and other specialist applications. They provide products that service domestic and international markets in the petrochemicals, and aerospace industries.
The business was acquired by Nimbus, the international investment group in 2020, and there is ambition to continue to grow the business.
Although the business had good cash reserves and was supported by facilities with a range of funders including Santander, Arbuthnot and UK Export Finance, there was a requirement for alternative funding for shorter term contracts. This is where the Tees Valley Catalyst Fund was able to help.
This unique £10million fund is designed to help companies win contracts when a bond or guarantee is required and is backed by the Tees Valley Combined Authority and the Government’s Regional Growth Fund.
Over 50% of Paralloy’s contracts are negotiated with advance payments and a number of these are backed by guarantees. The facilities provided by FW Capital are being used to support these guarantees, performance and warranty bonds to facilitate the completion of contracts. Key customers of Paralloy include Shell, Exxon, Rolls Royce, Thyssen Krupp and Tata Steel.
FW Capital Investment Executive, Allison Routledge, expands “Paralloy is a well-known, local business with an established reputation. They have an excellent, experienced management team with ambitious growth plans. It is a superb example of how the Tees Valley Catalyst Fund can be used to help a business deliver on high-quality contracts to key customers.”