The Royal Bank of Scotland and NatWest today announced the availability of £1bn in loans allocated specifically for UK manufacturing businesses.
The funds have been made available in response to feedback from businesses in the sector that are anticipating demand for products in 2010 and beyond. The fund will provide competitive loans designed to help businesses to finance investment and ensure an advantage of opportunities as markets recover.
The UK automotive manufacturing sector remains an important part of the UK economy as it recorded a £52.5bn turnover in 2008. With seven volume car manufacturers, eight commercial vehicle manufacturers and 19 global component suppliers, UK automotive manufacturing employs an estimated 140,000 people.
Throughout 2009, the automotive industry made significant changes to production schedules and employment levels in an effort to mitigate the negative effects of the economic downturn. In the latter half of the year, alongside the advent of the scrappage incentive schemes operating across Europe, production levels began to pick up as November 2009 saw the first increase in UK production since September 2008.
The total volumes for 2009 were well below previous levels and 2010 is set to be another difficult year with uncertainty at home and abroad. Today’s announcement is a welcome step as government and the private sector work to help sustain and strengthen economic recovery.
Click here for more information on UK funding and support.
