A specialist electrical components manufacturer has secured its future in the North East following a management buyout.
Kevin McLaughlin and Stephen Elliott, of the Jarrow-based HVR International, received a £2.5m loan from Lloyds Bank Commercial Bank to support the move, following the retirement of two fellow directors.
Sales and marketing director Elliott said: “This investment in the business will give us a great foundation to build upon in the coming year.
“We’ve seen steady growth in recent years which is something that we’re looking to drive going forward.
“As a relatively small business with a niche product we are able to focus on offering our clients a very personal level of service, and we constantly travel around the world to meet new customers face to face.
“We received a similar level of personal support from our relationship manager at Lloyds Bank Commercial Banking, and that made securing finance for our growth considerably easier than we’d ever anticipated, allowing us to focus on the continued expansion of the business.”
Based on the Bede Industrial Estate, HVR International is a leading producer of high-voltage and high-energy ceramic carbon linear resistors used in electrical switches for customers including Siemens, Alstom, ABB, GE and Hitachi.
The company’s products are exported worldwide and used in everything from wind turbines to medical science.
With two smaller divisions in Birmingham and Germany, HVR International currently employs 120 people and has a combined turnover of around £13m.
Lloyds Bank Commercial Banking provided financial backing for the MBO through the Government-backed Funding for Lending Scheme (FLS) loan, having previously provided support to the firm when it extending it manufacturing facilities in 2008.
Lloyds Bank Commercial Banking specialist manufacturing relationship director Don O’Henly said: “HVR International has an outstanding reputation globally as a producer of high-quality electrical components, which is a credit to the whole company.
“It’s great to see regionally-based SMEs like this competing and winning against international competition, reflecting both the high standards of their work and business acumen.”