Member Article

£6 million funding boost for North East’s steel industry

UK steel Enterprise has launched a new £6 million scheme to support businesses within the North East that are committed to expansion and sustainable employment.

The newly launched Equity Growth Fund has been backed by the government’s Regional Growth Fund (RGF).

A subsidiary of Tata Steel, UK Steel Enterprise is inviting applications from companies interested in accessing funds of up to £1 million to help drive growth and deliver job opportunities within their local communities.

The finance will be available to support a range of projects, which can include securing larger premises, investment in new equipment, new technology or to support working capital needs.

The scheme is available in the steel regions of Tees Valley, encompassing the five unitary authorities: Darlington, Hartlepool, Middlesbrough, Redcar and Cleveland, and Stockton-on-Tees.

Regions outside of the North East, Derwentside, West Cumbria, South Yorkshire, Humberside, The Black Country, Stoke-on-Trent, Chesterfield, Worksop and Corby, will also benefit from the scheme.

This fund is the latest initiative from UK Steel Enterprise, which has helped over 6,000 organisations to date, and continues the company’s tradition of investing in expanding businesses which can create jobs.

UK Steel Enterprise is one of 50 projects and organisations to receive support from Round 5 of the government’s Regional Growth Fund, which is expected to unlock £1.9 billion of additional private sector investment and create or safeguard thousands of jobs, while also generating thousands of jobs in the supply chains.

The Regional Growth Fund has already helped over 400 projects and 3,500 small and medium sized enterprises.

Keith Williams, UK Steel Enterprise regional manager said the organisation was now in a position to invest even more funds in growing companies thanks to the backing of the government’s RGF scheme, an initiative that also aims to act as a catalyst for sustainable economic growth.

Keith said: “This new fund allows us to invest more money in a greater number of companies to support their expansion ambitions.

“Part of the fund will be aimed at young, early stage companies with high growth potential, while established companies can apply for amounts up to £1 million.

“Businesses with a clear strategy to drive recruitment opportunities in the local communities in which they operate are encouraged to get in touch and discuss the funding options available.

“As an organisation, we are committed to supporting sustainable business growth, making sure that we implement a finance solution that is appropriate, whilst ensuring that management teams retain full control of their company.”

Minister for Universities, Science and Cities, Greg Clark, said: “This £6 million boost for the midlands and northern steel regions will support growing businesses as they create jobs.

“This investment from the Regional Growth Fund is a great example of how business and government can work together to create the jobs that are fuelling our recovery and building a stronger economy.”