South Shields – One of the North East’s most established plant hire businesses is set to build on decades of success after securing a significant investment from NPIF II – NEL Debt Finance, which is managed by NEL Fund Managers as part of the Northern Powerhouse Investment Fund II (NPIF II).
Mechplant (North East) Limited (Mechplant), based at the Port of Tyne in South Shields, has secured the funding to help it scale and execute the next stage of its strategic development and ambitious growth plans.
Operating across Tyneside, Wearside, Durham, and Teesside, Mechplant is one of the most recognisable names in the regional plant hire industry. With a proud history spanning several decades, the company provides a wide range of specialist services focused on mobile crane hire.
The funding will be used to further strengthen Mechplant’s operational capacity and invest in its equipment fleet, enabling it to better meet increasing demand from the construction and civil engineering sectors across the North East. It also supports Mechplant’s strategy of scaling the business to serve a growing client base while maintaining its strong reputation for reliability, service, and safety.
Director Stephen Makinson says the investment is a key enabler in Mechplant’s ongoing growth journey: “This investment marks an exciting milestone for Mechplant as we continue to grow and strengthen our presence across the North East. The support from NEL has been invaluable, and their team really understood our vision and ambitions from day one.”
The investment was led by Jane Siddle, Senior Investment Executive at NEL Fund Managers. She adds: “It was a pleasure working with the Directors at Mechplant during the investment process, they have a long-established track record, excellent reputation and communicated very clearly their plans for growth.”
Sarah Newbould, Senior Investment Manager at the British Business Bank said: “Supporting well-established regional businesses as they execute their growth plans is exactly what NPIF II was designed to do. It’s great to see a business with such a strong heritage continuing to evolve, and we’re pleased to see NPIF II playing a role in Mechplant’s next chapter and creating new opportunities across the North East.”
The investment from NEL Fund Managers was supported by legal advice throughout the transaction from Max Gilchrist, Corporate Associate Solicitor at Mincoffs Solicitors. The deal also benefited from the corporate finance expertise of Chris Hird, Director, and Lee Jefferson, Corporate Finance Manager at S&W, whose input was instrumental in ensuring the successful completion of the transaction.
The £660m Northern Powerhouse Investment Fund II (NPIFII) covers the entire North of England and provides loans from £25k to £2m and equity investment up to £5m to help a range of small and medium sized businesses to start up, scale up or stay ahead.
The purpose of the Northern Powerhouse Investment Fund II is to drive sustainable economic growth by supporting innovation and creating local opportunity for new and growing businesses across the North. The Northern Powerhouse Investment Fund II will increase the supply and diversity of early-stage finance for Northern smaller businesses, providing funds to firms that might otherwise not receive investment and help to break down barriers in access to finance.
For more information about NEL, please visit www.nel.co.uk or contact the investment team on 0345 369 7007.