A new Teesside-based engineering company is looking to the future with confidence after securing an investment package of £300,000.
Covol Engineering, based in Billingham, has secured £200,000, made up of £50,000 equity and a £150,000 loan, from UK Steel Enterprise, the Tata Steel business-support subsidiary, and £100,000 from NPIF- FW Capital Debt Finance, managed by FW Capital and part of the Northern Powerhouse Investment Fund.
The consultancy, incorporated at the beginning of the year, is already working with blue-chip companies across sectors that include oil and gas, manufacturing, food and power.
With an 11-strong team highly skilled in electrical, control and instrumentation engineering, the projects include facility design, improvement of existing plants and engineering consultancy to ensure companies are compliant with regulations.
Covol Engineering is forecasting orders of around £700,000 in its first year and aims to double both turnover and its team in the second year.
Managing director Jeremy Gadd has been able to draw on his wide experience of working in senior management on international and major projects in the sector including time with Lucite International, Vertellus Specialities and, more recently, GSE Systems.
“We have already put together a team of engineers with the high level of skills and international engineering experience that we need at Covol and are confident that we will be adding to that number very soon,” he said.
“We already have a number of existing connections with blue-chip companies but have ambitious plans to grow both at home and in the global market.
“The investment package from UK Steel Enterprise and NPIF-FW Capital Debt Finance is allowing us to take the business forward.
“It demonstrates that both investors share our confidence in Covol’s potential for growth which is also welcome. We are also grateful to the team at Archers Law in Stockton- on-Tees who assisted Covol in setting up.”
Peter Taylor of UK Steel Enterprise, said: “This investment is enabling a fledgling engineering company based in one of our steel areas to pursue its well-thought out plans for expansion and create valuable jobs for Teesside.
“We are very pleased to have been able to put together an equity and loan package for Covol Engineering and that we could work alongside FW Capital with this investment.”
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.
• Pictured (above, from left): Peter Taylor of UK Steel Enterprise, Nicky Atkinson of FW Capital and Jeremy Gadd of Covol Engineering.