Hull’s North Sea Ventilation Ltd (NSV) is cheering after securing a lucrative export deal with an existing customer in Nigeria.
North Sea Ventilation Ltd has secured a major Nigerian export deal after securing trade finance support from UK Export Finance (UKEF) and HSBC.
NSV is a specialist manufacturer supplying heating, ventilating, air-conditioning and refrigeration systems for the energy sector.
Established in 1992 to supply the North Sea oil and gas industry, the company now sells to customers around the world and has a £9m turnover.
With 80% of its sales overseas, NSV is a truly global business, and its key markets include the Middle East, far East, Europe, Russia, China, Australia and more recently Kazakhstan.
The company secured a £500,000 order to supply cooling equipment to Nigeria LNG Ltd. Under the terms of the contract, the buyer agreed to provide a 50% advance payment to provide project funding in the preliminary phases of the manufacturing process.
However, in return, NSV had to provide an advance payment guarantee through its bank, HSBC. HSBC was not able to provide a bond of the size required within NSV’s existing credit arrangements, so the bank turned to UK Export Finance (UKEF) for a guarantee under its Bond Support Scheme.
This meant the company was able to quickly and easily provide the required bond to its customer, ensuring it could access the £0.25m advance payment and re-cement a previous relationship with a client.
John Parker, finance manager at NSV, said: “Working with HSBC and UKEF has provided NSV the flexibility to realise export opportunities, securing larger contracts than we could otherwise be confident we could fulfil, and the new application process couldn’t have been simpler: less paperwork, quick turnaround and a positive decision.”
Jana Horvath-Pocciova, export finance manager at UKEF, added: “We’re delighted to be supporting world-leading suppliers like North Sea Ventilation as they grow their international reputation for quality, reliability and customer service.
“With this new bank partnership making it easier for SME exporters like these to access the finance they need to export, we hope to help even more in the future.”