Teignbridge Propellers reports exporting success

Teignbridge Propellers, founded 45 years ago, has changed hands and is once again under the direction of its founder David Duncan.

Based in Newton Abbott, the then fledgling company’s propellers, propulsion and steering systems were used by the likes of then (also fledgling) companies Sunseeker and Princess. The companies grew up together. Now Teignbridge exports 80% of its products between the leisure market, superyachts, military and commercial sectors and is building its global presence with a warehouse and machine shop in Dubai, and a factory in India currently employing 30 people.

It owes its successes in Bangladesh to UK Export Finance (UKEF). As a major exporter, Teignbridge has a commercial insurance policy with Euler Hermes, a large credit insurance company which normally provides the necessary insurance for export orders. However, the company was unable to obtain commercial credit insurance for an order from a new customer in Bangladesh which wanted to purchase propellers for its ferries, the government owned Khulna Shipyard.

“It was our first order for Khulna shipyard, so there was no track record,” explains Mark Phare, Sales & Marketing Director at Teignbridge Propellers. “Normally we use letters of credit which would have been fine, but also normally we seek companies we’re dealing with to be underwritten by credit insurers. But they don’t underwrite government shipyards, so had to look for another source to underwrite the contract.” This is where UKEF stepped in to help, making the process as obstacle-free as possible. “Having finance provided enabled us to have a smooth relationship with the yard,” says Mark.

The initial contract was for propulsion systems for four 42m landing craft with a value around £440,000. The success of that project led to three more contracts with naval and commercial vessels (including fishing), and a total relationship with the shipyard now being not far short of £1m. Plus, Teignbridge has expanded in the region and is working with five different shipyards.

Teignbridge continues to seek opportunities. Its investing significantly into its factory in India (for making basic parts), and investing into its factory in Devon (where the more technically advanced range of full shaft lines is made).

UKEF helps exporters win and fulfil contracts, and get paid.

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