MANUFACTURER Tanfield looks set to be in line for a significant investment after the US company which bought half its electric vehicles revealed plans to raise £32.6m.
Washington-based Tanfield sold its Smith Electric Vehicles business, which opened in Stanley more than 90 years ago, to its associated American firm Smith Electric Vehicles US Corporation – SEVUS – for £9.4m earlier this year.
Almost 200 UK staff shifted from Tanfield to Smith Electric Vehicles Europe Ltd, the new UK subsidiary of SEVUS, in which Tanfield retains a 49% stake.
The initial sale of the electric vehicle business has helped Tanfield to support its core cherry-picker operations and work towards getting back in the black, after cutting its losses from £10.4m to £9.8m in the six months to June 30.
Tanfield now looks set to continue benefiting from the deal after SEVUS announced its intentions to raise £32.6m through a private share placing.
Although Tanfield could not comment on the deal, as it is currently in a closed period before it publishes its financial results in April, it is expected that the firm will receive a big slice of the earnings.
It is believed that this share placing will also help the US company to grow significantly as it considers a flotation on the New York stock market.
