Bond support scheme underpins first offshore wind contract for Glasgow manufacturer.
About the transaction: PCT Group Sales
Sector Manufacturing, renewables
UKEF support Bond support scheme
PCT Group Sales, a Glasgow-based global manufacturer for the energy sector, secured a £3 million contract to supply cranes to build wind turbines for the new Neart na Gaoithe (NnG) offshore wind farm in Scotland with help from UKEF's bond support scheme.
PCT won a global tender to supply 54 davit cranes to produce wind turbines that will be installed at the 450 megawatt (MW) offshore wind farm off the Fife coast - PCT's first renewable energy contract.
PCT is an experienced exporter specialising in the production of lifting devices, including cranes, winches and hoists, with 90% of its revenue coming from overseas business.
International engineering company Saipem are the lead contractor for the installation of the wind turbine's foundations and deck platforms and will ship the cranes, produced by PCT, to Indonesia to complete construction.
The terms of PCT's contract with Saipem meant it was required to supply performance and advance payment bonds upfront, which would have placed a strain on the company's resources. UKEF backed the deal and provided PCT's bank with a guarantee for 80% of the bond, allowing the company to retain working capital for its business operations and fulfil the contract.
Brian Lemond, PCT Managing Director said:
Without UKEF's support we would have been unable to put the bonding in place, at this time, and couldn't fulfil the contract. I look forward to working with them as we continue to secure contracts in the renewable energy sector.
Carol Harvey, UKEF's Export Finance Manager, said:
The success of PCT demonstrates UKEF's ability to support a range of contracts across a wide variety of sectors. Our bond support scheme continues to play a crucial role in ensuring UK companies can fulfil their export contracts. Get the Exporters' Edge
Putting the right finance and insurance in place can give you the exporting edge, helping you to win contracts, fulfil orders and get paid.
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