EFIC assisted Tescorp Hydraulics with a working capital guarantee
Cairns-based manufacturer Tescorp Hydraulics has developed a reputation for delivering innovative engineering solutions to its customers in a range of industries, both in Australia and overseas.
When Tescorp won its largest-ever export contract - worth A$1.5 million, for a UK electricity sector project - the company needed additional working capital to deliver the contract.
Export Finance and Insurance Corporation (EFIC), Australia’s export credit agency, provided a working capital guarantee to Tescorp’s bank, the Commonwealth Bank, to help the company fulfil its contract.
EFIC’s working capital guarantee enable eligible SME exporters to access additional working capital from their bank to help their export businesses grow.
“Having provided similar machines for projects in Auckland and Sydney, we were confident we could meet our UK customer’s requirements,” said Tescorp’s general manager, Andrew Sands. “However, financing the initial production for a project of this size presented a new challenge.”
“We were impressed with EFIC’s ability to work with our bank and put together a financing package,” said Mr Sands.
Tescorp is supplying a purpose-built system to install new electricity cables in National Grid’s Woodhead Tunnel, in order to ensure continued safe and secure electricity supplies to Greater Manchester.
The UK’s Electricity Alliance—a partnership between National Grid and 15 construction companies—is managing the infrastructure project, which began in February 2008 and will take approximately two years to complete.
Tescorp has designed and manufactured the Hydraulic Lifting and Sagging Machine, which pulls more than a kilometre of cable into place at a time on hundreds of small trolleys.
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