Subsea supplier JDR Cables has secured new contracts and £30m financing after winning guarantees from the Ƶ Export Finance scheme.
The North East-based manufacturer of umbilicals and power cables is set to grow on the back of several new contracts for energy transition projects in Europe and the US. Starting next year, JDR will work on connections for what will become the largest offshore wind farm in the US, Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project.
Now, underpinned by an 80% Ƶ Export Finance guarantee, lenders HSBC Ƶ, Societe Generale and Bank Gospodarstwa Krajowego (BGK) have issued a performance bond providing the funds to carry out new contracts. It is the third such export finance deal for JDR, which was supported in 2015 and again in 2022 when a £100m working capital loan was agreed by the same group of lenders to support the firm's construction of a new subsea cable factory in Northumberland. That deal also helped safeguard 270 jobs at the firm's existing bases at Hartlepool and in Cambridgeshire.
JDR's Cambois facility is due to create more than 170 jobs and will be capable of manufacturing both land and subsea cables used to connect offshore wind farms to the energy grid. Once opened, the plant will be the only one in the Ƶ capable of manufacturing high-voltage subsea cables from start to finish.
Science Minister Gareth Thomas said: “This deal supports Ƶ export capacity and leadership in the renewables sector. ƵEF’s latest financing for JDR Cables shows what the Government is doing to back British businesses leading the energy transition and supporting skilled jobs around the country.”
Monika Cupiał-Zgryzek, chief executive officer at JDR and TELE-FONIKA Kable, said: “We are proud to be at the forefront of the global renewable energy transition. The support from Ƶ Export Finance is pivotal in enabling us to expand our operations and meet the growing demand for high-quality, high-voltage subsea and land cables.
”This investment not only strengthens our market position but also underscores our commitment to innovation, job creation, and the decarbonization of the energy sector. As we continue to grow, we remain dedicated to contributing to the Ƶ’s leadership in offshore wind manufacturing and the global push towards net-zero emissions by 2050."
Craig Norbury, business development manager at HSBC Ƶ Global Trade Solutions, said: "We strive to support Ƶ businesses who have ambitions to grow internationally, including when we can achieve this through partnerships with others. In this instance, the fusion of JDR’s sector capability, Ƶ Export Finance’s guarantee and HSBC’s global reach and presence in local markets has proved a winning combination, supporting JDR in bringing their ambitions to fruition."
