A UK company is exploiting the benefits of its product range in new international markets with the completion of a major deal with a Chinese company.
Teer Coatings, based in Droitwich, is a specialist physical vapour deposition coating company. The company has just completed the sale of four coating machines to Chinese company Zhejiang Huijin-Teer Coatings. Funding for the transaction was provided through the Bromsgrove commercial banking office of Royal Bank of Scotland (RBS).
Teer was formed in 1985, and now employs over 50 staff. The business is focused on three major areas: the design and manufacture of a wide range of coating equipment; the provision of a commercial coating service; and research and development, for which the company undertakes both contract work and in house development.
An important part of the company philosophy is to invest in and develop state-of-the-art equipment and research and development to place them at the forefront of the coatings market. It is this investment that has resulted in them wining a number of contracts across the world, with this contract in China being the latest.
The Chinese contract comes after the company has taken the initiative in the Chinese market and set up a £2.5mn joint venture in the country with Zhejiang Huijin.
Earlier in 2006, following an extensive R&D programme the company was able to solve the long-standing problem of depositing wear-resistant coatings on coining dies intended for numismatic coins without affecting polish or fine detail on the coins. This led to the signing of a licensing agreement with the Royal Canadian Mint, to collaboratively promote and market Teer Coatings technology for numismatic coining dies.
The technology enabled the Royal Canadian Mint to improve the useful lifetime of their dies, whilst improving the quality of finished coins. This major break through has excited great interest from mints around the world and will lead to many sales of equipment and technology.
RBS has long been a supporter of Teer Coatings and for both contracts, as well as supplying ongoing working capital to support the orders, the bank has also employed its international trade team to provide ongoing advice with regards trading with new markets.
Managing director of Teer Coatings, Paul Teer, says: “We are hugely excited to have completed our first major deal in China. We feel it is a real justification for the technology that we have developed here in Droitwich, that we are so well regarded in international markets. With the agreement with the Royal Canadian Mint we are now a truly international player in the coatings market. This is backed by our joint venture in China and provides us with a great platform to continue the growth of the company. We will continue to develop top of the range coating equipment and ensure we fully engage in our research and development programme, as this marks us out as a leading and innovative player in the coatings market. I should also recognise the support that RBS have provided us, not only in financial support but in the detailed knowledge they were able to impart in dealing with both Canadian and Chinese markets.”
Richard Mander, manager, commercial banking at RBS, adds: “It is rewarding to hear of a real local export success story. With business becoming more and more internationally focused, Teer Coatings is a clear example of a market focused company that takes its knowledge and product range and sells it to new markets around the world.”