A assure from UK Export Finance (UKEF) has offered Northern Eire-based bus producer Wrightbus with £50 million in financing to help its bold exporting technique.
This Export Improvement Assure sees the UK’s export credit score company assure 80 p.c of the mortgage from Barclays Financial institution.
This financing builds on earlier authorities help introduced final 12 months, serving to ship on the Prime Minister’s precedence of protecting the economic system rising. The event offers Wrightbus crucial working capital help in addition to a extra versatile method to deploy the funds to help its enterprise wants.
This may allow Wrightbus to ship orders to new markets, comparable to Germany and North America, in addition to extra orders in current markets like Singapore and Hong Kong.
The announcement comes per week after Minister for Funding Lord Johnson visited Wrightbus’ web site in Ballymena, County Antrim as a part of a wider go to to Northern Eire. There, he met traders and main companies forward of the Northern Eire Funding Summit going down later within the 12 months.
Minister for Funding Lord Johnson mentioned: “Wrightbus is a improbable instance of a British enterprise seizing the huge exporting alternatives world wide and embracing clear progress. UK Export Finance help for Wrightbus will probably be a fantastic increase to its exporting journey, serving to the corporate to create extra native progress and jobs.
“That is the kind of success we are going to construct on at this autumn’s Northern Eire Funding Summit, which will probably be a catalyst for securing extra funding, creating extra jobs and empowering extra companies to grab exporting alternatives.”
The corporate generated 27% of its revenues from exports in 2022 and seeks to develop this by almost a fifth by the tip of 2023 thanks partly to the UK authorities’s help. To facilitate this progress, Wrightbus plans to double its workforce by 2026, creating 1,000 new inexperienced jobs with a lot of the roles based mostly on the firm’s Ballymena hub.
The corporate’s hydrogen-powered, zero-carbon buses are in sturdy demand globally with over 600 buses of all sorts anticipated to be delivered by the tip of 2023, up from 450 final 12 months. Wrightbus now has the biggest hydrogen fleet within the UK, with 100 buses in operation.
Jean-Marc Gales, Wrightbus CEO, mentioned: “UKEF and Barclays’ help has been elementary to the event of Wrightbus. The versatile merchandise swimsuit the wants of our enterprise, which is rising exponentially and requires monetary headroom.
“We’re enthusiastic about our subsequent section and dealing throughout the Ballymena and wider Northern Eire group to ship revolutionary British expertise to the worldwide market.”
James Binns, World Head of Commerce and Working Capital, Barclays mentioned: “Barclays are proud to work alongside UKEF to allow British corporations to get the aggressive edge with regards to exporting.
“This new funding builds on our earlier help to Wrightbus, offering essential flexibility which is able to allow additional progress in exports and domestically, persevering with the important pivot in the direction of zero-emission gross sales.”
Primarily based in County Antrim, Northern Eire, Wrightbus launched the world’s first hydrogen-powered double-decker bus in 2020, and in addition produces and exports electric-powered single and double-decker buses. The enterprise is aiming to fabricate 3,000 zero-emissions buses by 2024, comprising 10% of the UK’s complete fleet. Wrightbus final month acquired an extra £12 million in joint authorities and industry-backed funding.