£30m UKEF support fuels JDR Cables' global expansion in renewable energy

10 Dec, 2024
Newsdesk
Cambridgeshire headquartered JDR  Cable Systems (JDR), a global subsea cable supplier and service provider and part of the TFKable Group, has won new contracts and is set to grow after a UK Export Finance guarantee helped it secure £30 million financing.
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Supported by an 80 per cent UKEF guarantee, HSBC UK, Societe Generale and Bank Gospodarstwa Krajowego (BGK) issued a performance bond which now allows JDR to deliver new projects supporting the global transition to net-zero.

Recent major contracts secured in Europe and the US have significantly bolstered JDR’s market presence in these regions. With the support of the guarantee, the Littleport company is well-positioned to expand its global operations.

These efforts contribute to the growth of the renewable energy sector and reinforce the UK’s leadership in offshore wind manufacturing. Gareth Thomas, UK Minister for Services, Small Business and Exports, said: “This deal supports UK export capacity and leadership in the renewables sector. UKEF’s latest financing for JDR Cables shows what the Government is doing to back British businesses leading the energy transition and supporting skilled jobs around the country.”

Monika Cupiał-Zgryzek, Chief Executive Officer at JDR and TELE-FONIKA Kable, added: “We are proud to be at the forefront of the global renewable energy transition. The support from UK Export Finance is pivotal in enabling us to expand our operations and meet the growing demand for high-quality, high-voltage subsea and land cables.

“This investment not only strengthens our market position but also underscores our commitment to innovation, job creation, and the decarbonisation of the energy sector.

“As we continue to grow, we remain dedicated to contributing to the UK’s leadership in offshore wind manufacturing and the global push towards net-zero emissions by 2050.”

This is the third time UKEF’s backing has supported JDR in securing more overseas contracts. In 2015, UKEF issued guarantees to help JDR grow its pipeline of export projects.

A £10m working capital loan was then agreed in 2022 – financed by the same consortium of lenders as this new guarantee – to support the construction of a state-of-the-art submarine cable production facility. This is due to create 171 jobs in the East Sleekburn, Cambois and Blyth areas of Northumberland, while supporting the broader UK supply chain and local apprenticeships.

Once complete, the facility will be the first one in the UK capable of full start-to-finish manufacturing of high-voltage and extra-high voltage subsea and land cables for offshore and onshore wind farms, supporting the growing global renewable energy market.

As the UK expands its floating wind capacity, JDR is positioned to tap into growing demand from countries with deeper waters requiring floating wind turbines.

Backing renewable energy projects is core to the delivery of UKEF’s business plan – in line with the Government’s aim to make the UK a clean energy superpower, this will put UK suppliers at the heart of the low-carbon transition with £10 billion in new finance for green exporters by 2029.

JDR works with many of the world‘s major energy companies and subsea service providers operating in oil & gas and renewable energy markets. Its customers use JDR‘s high performance subsea production umbilicals, intervention workover control systems, subsea power cables and accessories in the harshest of offshore environments.

It has facilities in the North of England as well as Houston and Massachusetts in the US and Brazil: Houston services projects in the Gulf of Mexico and Brazil across the broader Latin American region.

JDR was formed in the early 1990s when two of the most respected names in the industry, Jacques Cable Systems (UK) and De Regt Special Cable (Holland) merged.

In September 2007 JDR was acquired by Vision Capital, Goldman Sachs and Management from its then owners Bridgepoint Capital. This change in ownership saw, in March 2009, the start of a £30m investment programme to develop a new state-of-the-art manufacturing facility in Hartlepool. In April 2011 the Marine Cables division (seismic lead-in and air-gun umbilicals and defence cables) was sold to Fugro NV. In August 2017 TFKable Group acquired JDR Cables.