Allerton Steel welds path to growth

A Yorkshire manufacturing firm is expanding its production capabilities following a six-figure investment to support major infrastructure work.

Allerton Steel Ltd, based in Northallerton, has invested in a new boom welder to enhance its capacity and deliver major contracts, including work linked to HS2.

Established in 2009, the firm operates from a 50,000sq ft facility and employs 94 staff

The six-figure investment was supported by NPIF II – FW Capital Debt Finance, part of the Northern Powerhouse Investment Fund II (NPIF II), and has enabled the business to install a submerged-arc boom welder from ESAB.

Bosses say the welder – “a beast of a machine” – will allow the company to take on larger, more complex projects by increasing output and improving efficiency across its production floor. 

The machinery is capable of welding girders measuring more than three metres in height, supporting large-scale infrastructure and industrial projects.

Giles Penn, managing director at Allerton Steel, said: “This is a beast of a machine with high quality technical specifications that offers our clients quality welds with the capacity to meet the most demanding bridge fabrication programmes such as HS2.  

“The machine’s size and reach allow us to fulfil large-scale contracts previously beyond our physical scope which is a major step forward in our growth. 

“The new unit is also substantially more energy-efficient than older models, reducing our carbon footprint and operational overheads.

“We work in a sector that isn’t attractive to high street banks, but FW Capital  provided the funding we needed.   

“This is the third round of investment we have received from FW Capital over the years and we have a great relationship with Lindsey McMenamin and the team.”

Lindsey McMenamin, portfolio manager at FW Capital, added: “It’s exciting to see the growth progression that the addition of this new machinery will achieve for Allerton Steel. 

“We’ve worked with Giles and the team since 2021 with funding delivered from both the first NPIF and NPIF II funds. 

“Their success is a great example of how the funding made available from NPIF II can help scale up businesses and allow them to reach their potential. 

“With the boom welder’s capabilities, they can now compete for much larger projects, delivering them faster and more sustainably than ever before, as well as giving them a significant competitive edge.”

The £660 million Northern Powerhouse Investment Fund II (NPIF II) fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

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