Aerospace business doubles turnover with NATO contract
A Redditch aerospace business has doubled its turnover after securing a contract with NATO.
Newbow Aerospace designs, manufactures and supplies aircraft ground support equipment for the defence and commercial aviation industries.
The firm develops products that are used to maintain the tyres of Airbus and Boeing aircrafts, and its customers include British Airways, Virgin Atlantic and Etihad Airways.
Its latest contract is worth £750,000 and will see Newbow Aerospace supply 36 units of nitrogen and oxygen to NATO over 12 months.
Lloyds Bank helped the company secure a bond to cover production costs, a requirement of the contract with NATO, by introducing them to UK Export Finance and providing a £195,000 trade performance bond.
The contract has doubled the firm’s annual turnover from just over £1m to £2m this year. Newbow Aerospace has also hired an additional three members of staff to its 20-strong team to meet the increase in demand.
Ron Wilson, managing director at Newbow Aerospace, said: “There’s so much development in the aviation industry right now. The sector is moving to greener technologies and more fuel-efficient aircrafts made of carbon fibre and airlines are taking smaller planes on different routes more often. This has created more demand for our ground support equipment, and we’re regularly asked to create bespoke products for different aircrafts.
“The contract with NATO is significant for us and marks the next, big, international step for our business. Lloyds Bank has been by our side as we’ve looked to expand internationally and secure our first NATO contract, providing advice and guidance, and helping us to access funding.”
Phil Larner, relationship manager at Lloyds Bank, said: “Newbow Aerospace works with a number of Midlands businesses, so this contract will be of benefit to the wider supply chain.
“We’re committed to helping Britain prosper by supporting ambitious businesses that are a crucial part of the local economy, like Newbow Aerospace.”
