Carpenter & Paterson secures multi-million-pound India deal

Carpenter & Paterson secures multi-million-pound India deal

The deals come after UK Export Finance (UKEF) provided Reliance India with £300m credit to help fund construction work on its refinery in Jamnagar.

The financing was provided on the condition that Reliance sourced goods and work on the project from the UK.

This resulted in over 100 contracts being awarded to UK companies like Carpenter & Paterson.

The Welshpool-based engineer has been designing and manufacturing specialist pipe suspension equipment since the 1950s.

The firm primarily serves the oil, gas and power generation industries, with overseas sales accounting for up to three-quarters of total revenue.

Traditionally, markets in South East Asia have been important for Carpenter & Paterson, predominantly countries such as Korea, Japan, Thailand and the Philippines.

Over the last couple of years, the engineering firm has started to see significant increases in exports to the rapidly-growing Indian economy.

This boost in business with India is in large part thanks to the company winning 49 contracts with a single Reliance India, following a line of credit from UKEF.

Jon Boyce, senior export finance manager at UK Export Finance, said:  “We know there is a high demand for quality UK goods and services in other countries, and as part of the Department for International Trade, UKEF is here to make sure UK companies can make the most of these opportunities.

“That’s why UKEF can offer competitive financing for overseas buyers to help them access the UK expertise they want, as well as helping UK companies realise the full benefits of trading on an international scale.”

As a result of UKEF’s backing for the project, Carpenter & Paterson secured over £6.5 million in revenue over two years, helping to support dozens of jobs in Wales.

Thanks to this success, and the continued growth in demand for its products across Asia, the company has now established new manufacturing bases in India and Thailand.

Jonathan Lee, managing director, Carpenter & Paterson, added: “The Reliance Project for Jamnagar 3 was the largest single project we’ve ever taken on as a company.

“The business we won with Reliance resulted in an increase of more than 50% in our revenue, which may not have happened without UKEF’s involvement.

“This was a great opportunity for us, and with the additional knowledge that UKEF financing is also available to us as a UK exporter if we need it, we can have the confidence to be even more ambitious with our plans to boost our overseas business in the near future.”