Chinese venture for yorkshire mining
Pictured: South Yorkshire Investment Fund Chief Executive Tony Goulbourn with John Warren, Managing Director of Hydra Mining.
A South Yorkshire manufacturer for the mining industry is close to completing a joint venture with a major Chinese organisation.
Hydra Mining Tools International Ltd. has joined forces with the Taiyuan Mining Machinery Group (TMMG) to further establish their operations in China.
The company, which has sites in Rotherham and Doncaster, design and manufacture mining equipment and proprietary cutting systems for use, primarily, in the deep coal mining and potash industries around the world.
South Yorkshire Investment Fund has assisted Hydra Mining Tools with the expansion through a £50,000 loan.
Gordon McShannon, Chief Executive of Hydra Mining Tools, said: "The joint venture will enable us to penetrate the Chinese coal market and secure jobs in South Yorkshire. In order for the company to expand further we needed to make a strategic move into China, which has the biggest coal mining market in the world.
"UK mining is dwindling with only six pits now in operation, so we needed to look overseas to sustain the workforce and maintain our viability. This investment from SYIF will enable us to do this."
China mines more than two billion tonnes of coal every year, compared with 20 million tonnes in the UK.
Hydra Mining already exports to more than 20 countries, but previously had little operations in China. However, the joint venture will see Hydra Mining becoming one of the main exporters to the Far East country.
Gordon added: "The industry in China is 100 times bigger than in the UK, so we needed to obtain a foothold in that country. We believe our technology will be good for the Chinese market, increasing productivity and improving health and safety standards and helping Hydra to secure the future of the company in South Yorkshire."
South Yorkshire Investment Fund, Chief Executive Tony Goulbourn, said: "The success of the venture in China will have a positive affect on the company's workforce in South Yorkshire. It is another example of expertise coming from this region to benefit other areas of the world."
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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).