Eco concern opens markets overseas

Apr 30 2008 by Karen Dent, The Journal

A BUSINESS which exports almost all its output is feeling a positive wind of change as other countries start to act on the environmental agenda.

Interest in green issues has boosted HVR International, which has been making components for wind turbines for a few years in addition to its core business exporting high-voltage electrical resistors.

It has recently taken on a further eight staff at its Jarrow headquarters and earlier this year it bought Birmingham firm Pentagon Electrical Products. HVR has been exporting about 30 years and sold 96% of its output abroad in 2007. Managing director Alan Wilson said: “We are doing very well at the moment.

“The Far East is where it is growing, and in Russia. We broke into Russia about two years ago – there is now a market there and in the other Baltic states.”

Developing countries which buy its high- voltage switch products have traditionally been the firm’s cornerstone, but its move into wind turbine components means it has found customers in new markets. “The whole green thing is big around Europe and is now starting to kick off in the US,” said Mr Wilson.

Despite its long export experience, Mr Wilson has turned to UK Trade & Investment for advice on travel abroad and when dealing with overseas red tape. UKTI can advise established exporters as well as those considering selling abroad for the first time, and is justly proud of the North East’s export record.

Deputy international trade director for UKTI in the North East Ross Cordiner said: “Between 2000 and 2007, the North East’s export of goods grew by 40.5% by value. In the same period, the value rose by 21.75% for England as a whole. The region now has 6% by value of the export of goods for the country.”

The Government organisation has staff in 140 embassies who can be hired to explore whether there is a market in their particular country for a UK business’s products or services, under its Online Market Introduction Service.

This service is subsidised, as is some of the help it offers to businesses in the UK. This includes providing export managers to go into a firm for a couple of days a month to help inexperienced businesses set up their overseas selling operations.

The pound is currently at historic lows against the euro, which means it is cheaper for European firms to buy UK goods. About 60% of North East exports are currently sold in Europe, but Mr Cordiner said it was too early to judge what effect sterling’s weakness would have on the region’s exporters.

However, despite the pound’s long-term strength against the dollar, the US remains the biggest market by value for North East exporters and is worth about £1.4bn annually.

The crucial role of exports to the region’s economy will be celebrated tomorrow night at the North East Business Awards in the export category, sponsored by UKTI.

MEETING WILL WHET APPETITE FOR SHOW

NORTH EAST firms interested in a taste of what one of the world’s top food industry gatherings can offer them are being invited to find out more next week.

Northumbria Larder and UKTI have teamed up to host the event next Wednesday in Hexham, focusing on the opportunities offered by the Sial show in Paris, which takes place from October 19 to 23.

Sial is staged annually and showcases the latest foods and food innovations from around the world. It attracts 5,300 exhibitors and more than 140,000 visitors each year. UKTI’s specialist adviser for the food industry Jeff Bean said: “It is the key event for food industry professionals, from food manufacturers and retailers to distributors, importers and wholesalers as well as those involved in institutional and commercial catering.”

Those attending the Hexham meeting will hear from Guy Woodall, of Thorncroft Drinks, about his experiences in the export market, as well as hearing about the region’s food and drink industry from Michael McCallum, of Northumbria Larder.

An introduction to the Sial event will be given by John Cleave, vice- consul at the British Consul in Lille.

The meeting at Northumbria Larder’s headquarters at Beaufort Park, Anick Road, Hexham, is free but spaces are limited.

Those interested in attending can book a place by calling UKTI on 0845 050-5054.