A Northumberland-based manufacturer is taking on new business with data-centre developers after securing the support of
UK Export Finance (UKEF) and
Santander UK.
Salem Tube supplies tubes for heat-transfer and heat-exchange — an essential element of industrial cooling systems and exports them to over 40 countries each year. As the market for artificial intelligence (AI) and cloud data storage grows rapidly, Salem has been taking on more and more work.
Salem has now agreed a financing package worth £3.5 million which is provided by Santander UK and backed by the Government through UKEF. This gives the business the capital which it needs to take on larger data centre contracts and establish itself as a supplier to this emerging sector. UKEF offers its General Export Facility (GEF) scheme through all the major UK banks and a range of non-bank lenders. This allows exporters to access working capital facilities up to around £25 million.
Pat Kendell, UKEF’s senior export finance manager (North East England), said: “Salem Tube is a perfect example of how businesses in the North are adapting and thriving in emerging sectors. This deal shows how Government backing can help established manufacturers to seize new opportunities in emerging industries, and by supporting Salem Tube’s move into the data centre market, UKEF is helping to safeguard jobs and boost exports in the North-East.
Mark Ling, head of trade and supplier finance, Santander UK, said: “We are delighted to provide further support for Salem Tube’s growth. Our partnership and collaboration with both Salem Tube and UKEF demonstrates our commitment to the international growth of businesses in the UK.”
The funding will also help Salem Tube to complete its rebound from Covid-19 and fuel further rapid expansion. The company secured a range of overseas contracts in the USA and Middle East last year and is now contemplating employing more people. This is the latest phase of Salem’s partnership with UKEF, which has now supported the business for over five years and previously helped it secure new contracts in Africa.