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Case Study: Chesterfield Cylinders

Published: June 2007

Left to Right, Paul Gower of South Yorkshire Investment Fund, Phil Catton, Production Director, John Brown, Engineering Director, and John Hayward, Managing Director of Chesterfield Cylinders.

The Company

Chesterfield Cylinders Limited, an advanced engineering and metals company was established in 1897.

It is one of a handful of companies around the world which offers a specialist manufacturing, refurbishment and verification service for high pressure, seamless, steel gas cylinders used in gas transportation, gas ground storage applications and the defence, oil and gas industries.

Managing Director John Hayward and his team have sought to establish long term relationships with a blue chip customer base. The success of this strategy is reflected in the company's order book, its current £5 million plus annual turnover and its consistent profitability over the years.

The Challenge

Last year Chesterfield Cylinders' site in Derbyshire was selected to be re-developed for housing and the company was under pressure to find a new home.The business needed to relocate to an industrial area with good travel links. To help this move become a reality the business required financial support and advice.

Based in neighbouring North Derbyshire, South Yorkshire was an obvious location for Chesterfield Cylinders to consider. The company heard about South Yorkshire Investment Fund (SYIF) on the business grape vine and decided to get in touch for advice and potential funding.

The Solution

SYIF was quick to acknowledge the company's successful track record and the benefits they could bring should they be persuaded to relocate to South Yorkshire. Following initial discussions a £350,000 equity investment was negotiated.

The wheels were now set in motion for a move to Meadowhall Road in the Lower Don Valley, Sheffield, enabling the business to work closely with key suppliers and subcontractors including Sheffield Forgemasters.

The move also opened up further potential collaboration with Sheffield's universities and research and technology organisations.

Progress to Date

The company has now moved into its new Sheffield home, bringing 40 jobs to the region in the process.

John Hayward said: "This is an excellent location close to important travel links, with space to accommodate our large machinery and room to expand the company in the future. From a general business perspective it will be great to be in
the heart of Sheffield's thriving manufacturing area."

"I would like to thank South Yorkshire Investment Fund and all our financial backers and advisers who have shown great belief in us as a company and helped take our relocation

Paul Gower, Investment Manager, said: "Part of the Fund's remit is to assist companies seeking to relocate into South Yorkshire and aid inward investment in the region so we are delighted to welcome Chesterfield Cylinders to Sheffield."

In June 2007 Chesterfield Cylinders re-branded as Pressure Technologies and Floated on Aim. See the news section for further details.

Editor's Notes

About South Yorkshire Investment Fund

South Yorkshire Investment Fund  provided seedcorn, loan and equity linked investments, ranging from £15k to £2.5m, specifically to help small and medium businesses meet the gaps in funding they need for growth and development.

Created as part of the Objective 1 programme, the Fund is a private and public sector business finance provider. The European Regional Development Fund and Yorkshire Forward are investors in the Fund.

South Yorkshire Investment Fund also provided access to Business Angel investments from the Yorkshire Association of Business Angels and Microloans through BiG Business Loan Fund and Donbac Microloan Fund.

Finance Yorkshire has now taken on responsibility for providing gap finance in Yorkshire and the Humber.

For further details please contact Suzanne Tinkler,  on 0845 649 0000.

South Yorkshire Investment Fund Ltd is a company limited by guarantee (Registered No 3936065). South Yorkshire Investment Fund comprises three sub funds, the South Yorkshire Investment Capital Fund, the South Yorkshire Investment Development Fund, which are each managed by YFM Venture Finance Limited, and the South Yorkshire Investment Small Business Fund, which is managed by Finance South Yorkshire Ltd. YFM Venture Finance Limited (Tel 0113 294 5000) and Finance South Yorkshire Ltd (Tel 01709 386 377) are each authorised and regulated by the Financial Services Authority. South Yorkshire Investment Fund also provides a number of services, which are not regulated by The Financial Services Authority. These include the pilot Seedcorn Fund, BiG Business Loan Fund, Mentorbank and access to the Donbac Microloan Fund. BiG Business Loan Fund is managed by Donbac Ltd (company registration No. 01925556) and Key Fund Yorkshire Ltd (Tel 0114 242 8900).