International supply opportunities for UK companies
How UK companies can supply the large infrastructure projects that UKEF supports internationally.
In the December issue of In Practice, we introduced you to UK Export Finance (UKEF) and the wide range of support it provides to UK exporters, helping them to access working capital, to manage payment risks and to offer competitive terms to overseas buyers.
Here we highlight how UK companies can supply the large infrastructure projects that UKEF supports internationally. These opportunities primarily arise in very large projects in oil and gas, healthcare, petrochemicals, energy or construction (ie where UK Export Finance support is most often sought).
Since its first loan in 1919, UKEF has provided finance to global buyers on a simple condition: that they buy from the UK. This brings procurement opportunities to UK suppliers, enabling your clients to get involved in international projects backed by the government. UKEF has nearly £30bn of potential finance available to support international procurement from the UK, to add to the more than £20bn it has already committed.
Buyers are keen to source from the UK, but while the UK enjoys a reputation for quality, international buyers don’t always realise the depth and breadth of the potential UK supply chain. What’s more, many of the smaller suppliers can struggle for visibility in new markets, with limited time and resources for engagement.
So when UKEF makes an offer of finance to an international buyer, it will also offer a comprehensive menu of potential UK supplies at the same time. It will then introduce suppliers to the project: not only large lead contractors, but companies of all sizes, including small specialist suppliers of niche products or services.
To date this approach has resulted in five UK supplier fairs, attended by over 600 UK companies, which are expected to add over £1bon in additional UK contracts, thanks to UKEF’s involvement.
To take advantage, UK-based companies that would like to be introduced to UKEF-supported buyers should register their interest with UKEF using this form.
Once registered, UKEF will:
keep them informed of the supplies required for UKEF-supported projects
invite them to relevant supplier fairs, where they can meet the procurement officials seeking UK supplies
keep them up-to-date on our trade finance facilities, which help UK companies win, fulfil and get paid when doing business internationally
connect them with other relevant sources of government trade support, either in overseas markets or locally in the UK.