A leading Yorkshire structural and mechanical fabrication specialist has announced a significant growth in its production capabilities following the acquisition of a cutting-edge boom welder which will be used to deliver the firm’s contract with HS2 and provide a platform from which to secure new larger contracts.
The six-figure investment, backed by NPIF II – FW Capital Debt Finance, which is managed by FW Capital as part of the Northern Powerhouse Investment Fund II (NPIF II), has funded the brand new submerged-arc boom welder from ESAB. It marks a pivotal moment in the company’s growth strategy, giving Allerton Steel the capability to manage major infrastructure and industrial contracts that require the high-volume, high-quality output the new machinery provides.
Situated in Northallerton, Allerton Steel Ltd occupies a modern workshop and office facility with over 50,000 sq. ft capacity that is equipped with modern plant and machinery including semi-automatic welding, CNC operated profile, saw, drilling and milling machines. Established in 2009, the firm employs 94 staff and is a multi-million turnover business.
The addition of the brand new submerged-arc boom welder from ESAB is a gamechanger for the firm’s production floor. It is capable of welding girders of all sizes up to over 3m tall and is designed to handle large-scale, complex fabrications with precision.
Giles, Penn, Director at Allerton Steel explains: “This is a beast of a machine with high quality technical specifications that offers our clients quality welds with the capacity to meet the most demanding bridge fabrication programmes such as HS2. The machine’s size and reach allow us to fulfil large-scale contracts previously beyond our physical scope which is a major step forward in our growth. The new unit is also substantially more energy-efficient than older models, reducing our carbon footprint and operational overheads.
“We work in a sector that isn’t attractive to high street banks, but FW Capital provided the funding we needed. This is the third round of investment we have received from FW Capital over the years and we have a great relationship with Lindsey McMenamin and the team.”
Lindsey McMenamin, Portfolio Manager at FW Capital added: “It’s exciting to see the growth progression that the addition of this new machinery will achieve for Allerton Steel. We’ve worked with Giles and the team since 2021 with funding delivered from both the first NPIF and NPIF II funds. Their success is a great example of how the funding made available from NPIF II can help scale up businesses and allow them to reach their potential. With the boom welder’s capabilities, they can now compete for much larger projects, delivering them faster and more sustainably than ever before, as well as giving them a significant competitive edge.”
NPIF II – FW Capital Debt Finance can provide loans in the NPIF II area with a primary focus on the North West regions of Cheshire, Cumbria, Greater Manchester, Lancashire and Merseyside.”
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for the North’s smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance. FW Capital will provide debt finance options from £100,000 to £2million to businesses based in the North West of England, with some flexibility to lend across the North.
