Manufacturer on a roll with data centre boom

A manufacturer is expanding into the data centre sector after securing Government-backed financial support.

Salem Tube, based in Prudhoe, Northumberland, traditionally supplied industrial tubing for the energy industry, but is seeing increased demand from data centre developers.

Bosses say as AI and cloud computing drive the sector’s growth, the company’s cooling equipment has become essential.

To capitalise on the opportunity, Salem Tube has secured a £3.5 million financing package from Santander UK, backed by UK Export Finance (UKEF), with bosses saying the cash will help the firm take on larger contracts, strengthen its position in the global market and expand its workforce.

Salem Tube already exports to more than 40 countries and has benefited from UKEF support for more than five years, previously securing new contracts in Africa. 

Pat Kendell, senior export finance manager (North East England) at UKEF, said: “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 seize new opportunities in the industries of the future. 

“By supporting Salem Tube’s move into the data centre market, UKEF is helping safeguard jobs and boost exports in the North East.”

Mark Ling, head of trade and supplier finance at Santander UK, added: “We are delighted to provide further support for Salem Tube’s growth. 

“Our partnership and collaboration with both Salem Tube and UKEF demonstrates our commitment to the international growth of businesses in the UK.”

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