Bus manufacturer Wrightbus has been awarded £50 million in UK Export Finance (UKEF) in a move that is set to boost its exporting capacity and double its workforce.
The Northern Ireland based company plans to create 1000 jobs over the next three years and sell more of its electric and hydrogen buses to Europe and North America.
An “Export Development Guarantee” means the UK government agency UKEF will guarantee 80% of a loan from Barclays Bank. The £50 million includes £32 million of new funding, plus replacement of an £18 million contract-specific Export Working Capital Scheme, which was issued in 2022. The new arrangement provides significantly longer repayment terms while allowing the company more flexibility in where it is spent.
Wrightbus, headquartered in Ballymena, generated 27% of its revenue from exports in 2022 but hopes to increase this by nearly a fifth by the end of this year, as a result of this latest financing round. It expects to deliver 600 buses by the end of 2023, up from 450 last year. It aims to expand into new markets such as Germany and Northern America and grow in Singapore and Hong Kong.
Jean-Marc Gales, Wrightbus’s new Chief Executive Officer, says: “UKEF and Barclays’ support has been fundamental to the development of Wrightbus. The flexible products suit the needs of our business, which is growing exponentially and requires financial headroom.
“We are excited about our next phase and working within the Ballymena and wider Northern Ireland community to deliver innovative British technology to the global market.”
The announcement comes in a week in which Shadow Chief Secretary to the Treasury Pat McFadden visited the factory and commented on the “huge potential” of hydrogen buses.
Earlier this year Wrightbus and Hygen announced plans for a new hydrogen production facility at its Ballymena base to provide enough clean energy for up to 300 buses per day.
Government Minister for Investment Lord Johnson says: “Wrightbus is a fantastic example of a British business seizing the vast exporting opportunities around the world and embracing clean growth. UK Export Finance support for Wrightbus will be a great boost to its exporting journey, helping the company to create more local growth and jobs.
“This is the type of success we will build on at this autumn’s Northern Ireland Investment Summit, which will be a catalyst for securing more investment, creating more jobs and empowering more businesses to seize exporting opportunities.”
