Partner:Northern Powerhouse Investment Fund
Programme:Northern Powerhouse Investment Fund
ENEX Group is a manufacturer and supplier of Mechanical Safety Interlocks and Process Safety Systems to the oil and gas industry. Since it was founded in 2001, the company has offered a full project scope to its clients, which includes design support, project management, manufacture and installation, as well as maintenance and repair.
The company is at the forefront of its industry, with its recently launched ‘patent pending’ ENEX i-LOCK product range providing a greater level of safety and reliability compared to its competitors. The success of its products has attracted global interest, and the company is targeting further growth in overseas markets in the next three years.
NPIF – FW Capital Debt Finance, an NPIF fund managed by FW Capital Limited has provided £250,000 worth of debt funding to the company, marking NPIF’s first investment in the Tees Valley region since it was launched earlier this year with support of the Tees Valley Combined Authority.
FW Capital’s Investment Rationale
The investment from NPIF will allow the business to meet demand from customers in overseas markets. The company is in the process of carrying out further developments on a series of other safety products to help clients overcome plant operational restrictions. ENEX is also looking to boost its headcount, which currently stands at five, by creating an additional 16 jobs in the Middlesbrough region over the next three years.
Keith Charlton, Investment Executive at NPIF – FW Capital Debt Finance, said: “ENEX is led by a fantastic team, with a great track record and is very experienced in pipeline operations and mechanical interlocks. Wayne has previously built-up businesses in this sector in both the UK and the Middle East. Through this he has established a strong network of contacts in key territories for the business. This will add tremendous value to the company’s development as it looks to target growth both in the UK and internationally.”
Wayne Hodgson, Managing Director at ENEX Group, added: “I am delighted to have completed a deal with NPIF and FW Capital Debt Finance. After our initial internal investment of £1m during the R&D, design, testing and production set-up stages, we were introduced to the fund at a time when it was tricky to obtain traditional funding. We are now in a much stronger position with the £250,000 investment; providing working capital requirements to meet the demand from our global customers.
“The ENEX i-LOCK is the next generation of products and the industries safest. We made the decision to have complete production in the UK after initially investigating manufacturing in the Far East. Based on our extensive development and design innovation, we can manufacture quicker and cheaper here in the North East than overseas.
“We are constantly developing new products to ensure we continue to be a major game changer in the global Mechanical Safety Interlocking Industry whilst maintaining our commitment to using local North East suppliers.”
Grant Peggie, Director at British Business Bank, said: “This first Teesside investment represents a significant milestone for the Northern Powerhouse Investment Fund, and demonstrates our commitment to support growing businesses in the Tees Valley.
“ENEX is precisely the type of company that we set out to back when we launched the fund in February.”
Paul Booth, Chair of Tees Valley Local Enterprise Partnership and a member of the NPIF Steering Group, said: “This is fantastic news for ENEX Group and for the Tees Valley economy.
“This stream of funding can make a tangible difference to businesses, as is demonstrated by the growth in sales and job creation ENEX is expecting. I would encourage other companies to explore the opportunities the Northern Powerhouse Investment fund offers.”
The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.
For more information about Northern Powerhouse Investment Fund, please visit www.npif.co.uk.
FW Capital Limited is regulated by the Financial Conduct Authority as a small authorised UK Alternative Investment Fund Manager under firm reference number 506719
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