An Aberdeen-based distributor of pipeline equipment to the oil and gas sector is expanding internationally after winning a multi-million pound contract.
Online Valves has been able to grow the business into new markets after securing a £1million funding package from HSBC.
The deal with the bank has enabled the business to lock down a three-year contract, based in the Middle East and worth £10 million, helping to double its turnover. Online Valves will also use the new financing to grow its UK base.
The firm currently employs seven full-time, and one part-time, members of staff in Aberdeen, and as a direct result of the finance hopes to introduce two additional full-time roles in the UK. It also employs two members of staff based in Houston, Texas and one in Dubai. Online Valve’s sister company, Online Cables, has also grown rapidly and now supports a team of four in Dubai.
David Sim, owner of Online Valves, said: “Since acquiring Online Valves in January 2017, my primary aim has been to grow the business organically both in the UK and international oil and gas sector. HSBC’s complete support has been excellent throughout, understanding our business needs at a daily working level; this has allowed us the essential flexibility needed to secure an increased number of contracts, and substantially boost our turnover.”
Susan Rowand, head of business banking for HSBC in Scotland, added: “Online Valves is a Scottish company looking to strengthen its position both in the UK and overseas. We used our expertise to facilitate larger project contacts, including establishing credit with suppliers. David has great ambitions for the company, and we are excited to see where this next stage leads.”
David Sim successfully bought-out the company in 2017, with assistance from HSBC, and has since embarked on a wider expansion plan. Founded in 2011, the company specialises in pipeline valves. It currently provides services to almost 40 countries, including operations in Houston, Trinidad, Kazakhstan and Dubai.
The finance was allocated from HSBC’s national £10billion SME fund to actively support UK SMEs. £500million is specifically designated to support Scottish firms.