UKEF provides £100m to help Blyth renewables specialists open new plant and secure exports

  • RPG Cables has announced plans to construct a state-of-the-art submarine cable facility in September 2021
  • UK Export Finance has backed a £100m working capital loan to fund construction, supporting 170 high quality local jobs in the North East
  • The new site will improve RPGand unlock international offshore wind contracts as it supports global net zero goals

RPG Cable systems (RPG)global supplier and repairer of submarine cables and member of the TFK Groupreceived a working capital loan of £100 million from Société Générale, HSBC UK and Bank Gospodarstwa Krajowego (BGK), supported by UK Export Finance (UKEF) to start building its new state-of-the-art submarine cable manufacturing plant in Cambois, near Blyth, Northumberland to secure more national and international contracts.

RPG Cable Systems is the leading provider of submarine cable technology and offshore services that connects the global offshore energy industry. Global energy companies depend on high-performance, resilient cables to deliver clean power created by offshore wind farms to land. Offshore wind farms play a vital role in helping countries meet their net zero commitments and, with 2,571 offshore wind farms and projects in more than 50 countries, RPGThe export potential of is significant. This follows the company’s receipt of funding from the government’s £160m offshore wind manufacturing investment support scheme announced in September 2021.

Secretary of State for International Trade, Anne-Marie Trevelyan said:

It has never been more important to boost energy security in the UK and around the world as we reduce our dependence on fossil fuels and face instability in global energy markets. Our support for UK businesses that facilitate the transition, such as RPG, is vital to ensuring a cleaner and safer future. This will grow our economy by creating jobs and unlocking vital business opportunities.

The support of Societe Generale, HSBC United Kingdom and BGK supported by UKEFwill allow RPG to build a facility to support the company’s production of submarine cables that are used to transport power from offshore renewables. It is the first step in RPGThe long-term plan extends to better support the global renewable energy market and help the UK and other countries around the world achieve ambitious zero emissions targets. Planning permission has been granted to RPG and once planning conditions are met, construction of the new facility will begin in the fall of this year, with the facility expected to open in 2024.

UKEF provided support to RPG Cables benefiting from an Export Development Guarantee (EDG) which helps UK exporters access high-value loan facilities for general working capital to carry out projects that will boost international trade. Since its launch in 2019, the government has supported over £10bn of loans across multiple sectors through the EDG.

Following this announcement, the Department of International Trade will host the Green Trade & Investment Expo in the Northeast this fall. The Expo will show how British businesses like RPG Cables can support the UK’s clean growth ambitions and the move to net zero.

We are committed to helping the UK and other countries around the world make vital progress in the green transition. Thanks to UKEFwe look forward to opening the doors to our state-of-the-art facility in Blyth in 2024 and playing an even greater role in supporting the offshore wind industry across the globe with high quality specialist subsea cables.

Vijay Raman, UK Head of Development & Structured Export Finance, and Su Ming Lim, UK Co-Head of Advisory & Financing Group at Societe Generale, add:

We are happy to have advised RPG for the first stage of this new facility, which marks an important step in the company’s plans to support the growing offshore wind sector, while creating jobs for local communities.

As power generation capacity and demand for offshore wind projects become increasingly important, the supporting infrastructure, such as the power transmission capacity of cables such as those manufactured by RPG. This infrastructure is essential to the success of renewable energy projects, as well as the success of the UK’s net zero strategy and the global energy transition programme.

RPG plays an important role in enabling renewable energy production and energy security. This new UK cable facility supports our client’s UK and international growth ambitions and helps strengthen UK manufacturing capability. At HSBC UK, we see our role in supporting UK businesses in the transition to net zero by providing world-class financial solutions and expert advice. We are proud to have funded RPGworking closely with UK Export Finance and acting as sustainability coordinator for the finance.

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