Paralloy forges ahead after securing funding

A Teesside-based manufacturer is set to accelerate its growth following significant investment.

Paralloy Group, a specialist in stainless steel alloy manufacturing, has secured a seven-figure loan from the Teesside Flexible Investment Fund, marking the fund’s first major deal since its launch last year. 

Bosses say the investment, managed by FW Capital with backing from the Teesside Pension Fund, will support Paralloy’s “next phase of growth” and ensure it is “well positioned” to meet rising demand across industrial markets and advances in new technologies.

They add that it will generate new jobs and help the firm seek “new project wins with several exciting local opportunities”.

Robert McGowan, chief executive of Paralloy, said: “Paralloy is proud to be based in Teesside, employing local people and showcasing our local capabilities alongside our global presence. 

“We’re committed to driving economic growth and this is why we are working with FW Capital and the Teesside Flexible Investment Fund.

“The North East is making a solid claim as a key player in the UK’s energy transition and we’re well positioned to support the next generation of industry and the fuels of the future.”

Alex Gent, senior investment executive at FW Capital, added: “We have a long-standing relationship with Paralloy and this investment has been an opportunity for FW to support their next stage of growth. 

“As Teesside looks to lead the way with decarbonising industry through initiatives such as Net Zero Teesside and the work of the East Coast Cluster, having a company such as Paralloy operating locally with their market leading technologies in this sector is a real asset to the region. 

“Alongside this, their growth as a quality employer in Teesside and the opportunities this provides to retain local talent in the area make this investment a fantastic fit for the fund.” 

Founded in 1967 and headquartered in Billingham, Paralloy, which was recently awarded a 2024 King’s Award for Enterprise, produces high-performance castings for industries, including power generation and transportation. 

Now operating across five UK sites, the company has doubled its North East workforce in the last five years, employing over 500 people locally and 1000 globally. 

Richard Butts and Imogen Holland of Ward Hadaway advised on the deal, along with Dahren Naidoo of Freeths.

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