Therco looks east for growth
A YORKSHIRE manufacturer is planning to expand internationally after receiving a loan from South Yorkshire Investment Fund (SYIF) to buy new plant and equipment.
Sheffield-based Therco believes it can win business in emerging former Russian states such as Kazakhstan and Karachaganak.
The company designs and fabricates heat exchangers for the process industry and growth for the company has come from oil and gas exploration and refining.
The company’s fabrications play an important role in temperature change alongside condensing and evaporating processes in oil and gas installations.
The company said that since its formation in 2004, it had grown to become the UK’s market leader in its industry.
Therco has now received a £50,000 loan from SYIF to help increase productivity.
Rob Sawtell, managing director of Therco, said: “Having gone from a standing start in 2004 to nearly a £10m turnover this year, controlling the inevitable growing pains has proved challenging.
“Whilst representing only a small part of our working capital the money from SYIF is a welcome cash injection designed to facilitate the purchase of new plant and equipment.
“The resulting productivity benefits will help streamline our launch onto the international stage where projects are generally larger, financially speaking, and technically more challenging.”
“With a shortage of fabrication capacity in places as far apart as Europe and North America, places like the Hague, Canada and the Middle East remain mouth watering prospects for a company with our level of expertise and commitment.”
Karl Hudson, SYIF’s investment director, said: “Therco have achieved excellent growth in recent years. They are an ambitious company and want to continue their success in this country and globally.
“Therco have established themselves very quickly as the market leader and we hope that with our financial support they will have the equipment and the drive to establish themselves on the global market.”
SYIF can provide seedcorn, loan and equity linked investments, ranging from £15,000 to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.
Created as part of the Objective 1 programme, the fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the fund.
