The export credit agency’s support for overseas infrastructure projects has created major new trading opportunities for UK suppliers like Severfield plc
A deal supported by the UK government’s export credit agency has landed a £4.5 million export contract for structural steel firm Severfield.
Headquartered in York, Severfield has five manufacturing sites in the UK and two in mainland Europe. Severfield operates in a range of sectors including infrastructure, transport, and commercial, working on high-profile projects such as Tottenham Hotspur Stadium, 22 Bishopsgate, and London’s tallest building, The Shard.
In 2021, UKEF helped the Guyanese government to finance a new paediatric and maternity hospital by providing a €161 million loan. The export credit agency supported the project on the condition that it involved UK suppliers, subsequently securing this opportunity for Severfield.
Since securing the contract, Severfield has fabricated steel for this project at its Dalton site in North Yorkshire, where it is a major employer supporting over 500 jobs. The company has now shipped 1,900 tonnes of structural steel to Guyana where it will be used by VAMED Engineering GmbH as it builds the new hospital in the capital, Georgetown.
UKEF’s guarantees and loans help overseas governments and businesses to secure financing for projects involving UK goods and services. The new announcement showcases the way in which this creates multimillion-pound contract opportunities for the domestic supply chain.
Since 2020, UK suppliers have secured over £1.3 billion in new contracts because of infrastructure projects going ahead thanks to UKEF support.
Lord Offord, Minister for Exports, said:
Rob Evans, Divisional Managing Director of Severfield’s Commercial & Industrial division, said:
Upon completion, the hospital is expected to become a point of referral for high-risk cases from across the country and eventually the Caribbean. It will also work as a teaching hospital – the first institution of its kind available in Guyana.
Jane Miller OBE, British High Commissioner to Guyana, said:
This announcement follows the December 2023 publication of the government’s Advanced Manufacturing Plan, which recognised the role of the manufacturing sector in producing over 40% of the UK’s exports. In the financial year 2022-23, UKEF provided £3.5 billion in new, direct support to the UK’s manufacturing sector in the form of loans, guarantees and insurance.