GovWire

• Based in Prudhoe, County Durham, Salem Tube has traded for over 30 years and makes industrial tubing.

• It has traditionally served the energy sector but is taking on more and more orders from developers of data-centres.

• Data-centres have high energy requirements and cannot function without cooling equipment provided by Salem Tube.

A manufacturer from Northumberland is taking on new business with data-centre developers after securing the support of UK Export Finance (UKEF) and Santander UK.

Salem Tube has traded since 1992 and supplies tubes for heat-transfer and heat-exchange something essential to industrial cooling systems. It exports to over 40 countries a year, typically in the energy sector.

As the market for AI and cloud data storage grows rapidly, Salem has been taking on more and more contracts in this area.

Salem has now agreed a financing package worth 3.5 million which is provided by Santander UK and backed by the government through UKEF. This gives the business the capital which it needs to take on larger data-centre contracts and establish itself as a supplier to this emerging sector.

UKEF offers its General Export Facility (GEF) scheme through all the major UK banks and a range of non-bank lenders. This allows exporters to access working capital facilities up to around 25 million.

Pat Kendell, Senior Export Finance Manager (North East England), UKEF:

Salem Tube is a perfect example of how businesses in the north are adapting and thriving in emerging sectors. This deal shows how government backing can help established manufacturers to seize new opportunities in the industries of the future. By supporting Salem Tubes move into the data-centre market, UKEF is helping to safeguard jobs and boost exports in the North-East.

Mark Ling, Head of Trade & Supplier Finance, Santander UK:

We are delighted to provide further support for Salem Tubes growth. Our partnership and collaboration with both Salem Tube and UKEF demonstrates our commitment to the international growth of businesses in the UK.

This also helps Salem to complete its rebound from COVID-19 and grow larger than ever. It secured a range of overseas contracts in the USA and Middle East last year and is now considering taking on more employees.

This is the latest phase of Salems partnership with UKEF, which has supported the business for over 5 years and previously helped it win new contracts in Africa.

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