Magnomatics, the Sheffield based developer of magnetic transmissions and ultra compact motors, was delighted to receive a visit from business minister Michael Fallon, on Friday 20th June. Michael Fallon met with Magnomatics to see first hand how government funding benefits UK manufacturing and engineering.
Magnomatics is expanding following £1m of support from the Government’s Regional Growth Fund (RGF). The funding, along with almost £5m of investment from Magnomatics, will create 41 highly skilled jobs at the company and allow it to bring to market its products for vehicles, trains and ships around the world. Following the launch of the latest round of the RGF on Thursday 19th June by the deputy prime minister Nick Clegg, Michael Fallon will also call on businesses across the region to come forward and bid for support from the £200m available in the sixth round of the fund.
Magnomatics is a high technology spin out company from the University of Sheffield, which since its incorporation in 2006, has specialised in the development of energy efficient technologies, which enable fuel savings and carbon reduction across a range of applications and market sectors. It benefits from funding for research and development from the Technology Strategy Board, the UK’s innovation agency. One of its main goals is for businesses to work together to achieve economic growth, bringing together business, research and the public sector. Magnomatics has won seven Technology Strategy Board awards to assist in the development of its pioneering green technologies.
Magnomatics has also benefitted from an equity investment of just over £1m from Finance Yorkshire, which provides seedcorn, loan and equity linked investments, ranging from £15,000 to £2m, specifically to help small and medium sized businesses meet the gaps in the market for the funding they need for growth and development.
The visit took place at Magnomatics’ head office in Sheffield, where Michael Fallon met with Magnomatics managing director Chris Kirby and chief operations officer David Black, along with David Grey, Chris Scholey and David Hewitt of the Sheffield City Region LEP. Michael Fallon MP said: “Advanced manufacturing and companies like Magnomatics are helping to strengthen the economic recovery. Magnomatics are a good example of the impact the Regional Growth Fund can make by supporting businesses to deliver their plans for growth, win new contracts and create jobs. I’d urge businesses in Sheffield who want to expand to come forward and bid for a share of the £200m that is available in the latest round of the Regional Growth Fund.”
Chris Kirby said, “We were delighted to be able to show Michael Fallon how much RGF and Technology Strategy Board funding has assisted with the development of our magnetic transmission and electric motor and generator products and to be able to explain how important government funding is to growing high technology businesses like ours.”
LEP board member, David Grey said: “It’s great that Mr. Fallon was able to visit one of the beneficiaries of our LEP-led RGF programme. During the visit, I took the opportunity to explain that, for an SME-dominated economy such as ours, the national programme RGF isn’t always a viable option. To address this issue, the SCR LEP secured £32m of RGF from Round 3 and 4 of the RGF, and has set about investing that funding in scores of SMEs in return for direct business investment and sustainable private sector employment”.
LEP board member Chris Scholey said “Our LEP programme is really delivering and I am pleased the minister has seen this in action. We are seeking to secure a devolved fund as part of our ‘Growth Deal’ negotiations. Growth Deals are about ‘earned devolution’ and the decentralisation of powers and resources. Our RGF programme is a classic example of where this can be achieved.”
Michael Fallon is the Department for Business minister with responsibility for overseeing the Regional Growth Fund.
