Alicat Workboats secures contract with support of £2 million finance package from Virgin Money backed by UK Export Finance (UKEF).
- The finance helps Alicat Workboats to build two offshore wind workboats, using 100% British materials.
Alicat Workboats has secured a major contract to build offshore wind workboats after UK Export Finance (UKEF), the UK export credit agency, helped it to access a £2 million financing package.
With the new capital, Alicat will be able to build two workboats worth almost £1 million each for export to Turkey. Both workboats will be manufactured in Great Yarmouth, Norfolk, using 100% British materials.
Housed on a 90-metre vessel, the boats will undertake installation and maintenance on an offshore wind farm, minimising fuel spent sailing to and from port.
Virgin Money provided the facility, which is backed by a UKEF guarantee offered through its General Export Facility (GEF) product. Without the support, Alicat may have had to turn down these contracts and lose them to overseas competition.
Alicat provides bespoke marine and engineering services including the manufacture of aluminium workboats, full-service boat repair, and carbon and stainless-steel fabrication. Its recent work includes building a fleet for one of the UK's leading offshore vessel operators, and repairs to multiple vessels working around the UK including offshore wind vessels, ferries and harbour-support vessels.
There is a global shortage of workboats servicing the offshore wind infrastructure. The contract win is a sign of the international demand for British renewables expertise in the marine sector.
The GEF is a product that helps businesses of all sizes - especially smaller businesses - access trade finance options up to around £25 million.
The financing has also allowed Alicat Workboats to support 35 existing jobs and take on new apprentices, supporting the future of shipbuilding in Norfolk.
Backing small businesses and the green export sector is core to UKEF's Business Plan, which supports government aims to improve Britain's clean energy capability.
Richard Hill, UKEF Export Finance Manager for Essex, Norfolk, and Suffolk said:
It is great to be able to help Alicat Workboats to secure this new business and achieve UKEF's key goals to maintain and grow local employment and support the transition to renewables, with energy being a key part of the Norfolk economy. We are keen to help local businesses. Our help is free and can be accessed through myself for Norfolk, Suffolk and Essex and my fellow Export Finance Managers UK-wide.
Simon Coote, General Manager at Alicat Workboats, said:
With the support of the UKEF Export Team and Virgin Money, Alicat Workboats were able to secure financing using the UK Export Finance guarantee scheme. This in turn allowed Alicat to secure the build of two new vessels for a major shipbuilder in Turkey and provide 12 months of secured work in our Yard in Great Yarmouth, allowing us to maintain local employment and training opportunities for the next generation of boat builders.
I would encourage any small businesses looking to start exporting or growing their existing export business to contact their local UKEF Export Finance Manager and make use of the advice and schemes that are available.
Craig Wilson, Head of FX Sales & Trade Finance at Virgin Money, said:
We are delighted to have taken on Alicat Workboats as a customer of Virgin Money with the backing of UK Export Finance. It is genuinely so pleasing to provide solutions to businesses that help them grow, and we look forward to continuing to assist Alicat on their success story.
