£24 million Tooling Funding Programme
A new £24 million government fund is set to give UK-based automotive suppliers a welcome boost as they look to grow their businesses.
Announced by Business Minister Michael Fallon at the Automotive Council’s Meet the Buyer event at ExCeL London, the Tooling Funding Programme will help component manufacturers design, develop and manufacture new tooling where they would otherwise fail to acquire funds.
Business Minister Michael Fallon said, “Government and industry are working together to boost UK supply chain competitiveness and growth. Our automotive industrial strategy sets out how we will secure the long-term future of the sector – by growing the UK share of the value chain, and by getting ahead of the game in research and development for the vehicles of tomorrow.
“This fund is a practical example of how we are working in partnership with industry to break down barriers to growth. Manufacturing is driving the UK’s recovery and our vibrant automotive sector is leading the way.”
UK automotive manufacturing is enjoying a renaissance, with car output set to reach all-time record volumes by 2017. Developing a more competitive domestic supply chain to keep pace with this growth is one of the major challenges facing the sector, however, as UK-built cars currently only feature around 35% UK-sourced components
This Bespoke Funding for Tooling is:
- A £24m revolving funding programme from the Regional Growth Fund
- To fund the expansion of tooling capacity and capability across England includes the design, development and manufacture of tooling and the expansion of tooling capacity.
- Aimed at toolmakers and component manufacturers supplying any sector
- Require firm orders for tooling from OEM / tier 1/tier 2 companies
- Final manufacturer of tool and subsequent component needs to be based in England
- Provides loan facility of £50k to £1m at a commercial rate of interest plus arrangement fee
- Repay the loan when you get paid for the tooling
Please see below a link to the presentation containing an explanation of how it can provide new and additional funding to grow the capacity and capabilities of toolmakers and component manufacturers and an explanation of how the application process with its objective of fast tracking funding requests.
Look at applicants guidance notes, FAQs, EOI and application documentation on web site – www.financebirmingham.com