Government backs Megger Group loan

The loan was announced by Anne-Marie Trevelyan, secretary of state for international trade, at Megger’s manufacturing headquarters in Dover where it develops and produces electrical testing solutions.

UK Export Finance (UKEF) guaranteed 80 per cent of the new loan provided by HSBC and Commerzbank, under the government’s Export Development Guarantee (EDG) program, which is designed to drive investments into UK exporters.

This support will enable Megger to expand its UK exporting capacity and invest £15m to enhance a factory in Dover. The loan will also enable Megger to invest further in smart grid technology, such as sensors and cable analytics, and provide additional working capital to help the company fulfil overseas export contracts.

In a statement, Trevelyan said: “Megger is headquartered in the UK with over 130 years’ experience in the electric supply industry.

“Investment through UK Export Finance will grow Megger's UK operations, helping to solidify the UK's energy security and creating high-skilled green jobs that pay well.”

Megger’s equipment, technology and expertise can help ensure that the UK national grid can cope with greater demand as fossil fuels are phased out. As the UK transitions to net-zero, the pressure on the grid will intensify and it will need to run more efficiently.

Jeremy Simpson, CFO at Megger Group said: “UKEF has recognised that Megger is a growing company based in the UK, that designs and makes high value-added products with strong global exports, and growth prospects in new markets.

“The UKEF EDG loan guarantee will help us to invest in more smart electricity technologies, to help grid operators with their aims to increase efficiency and save them and consumers money."

The UK was the first country to legislate net zero in 2019 and UKEF is providing finance to help internationally focused businesses to invest in clean energy. It has over £2bn available of direct lending to finance clean growth projects.