Success story

NZEC Loan Guarantee supports USD 2.5m loan facility


G Tech Group centrifuge


USD $2.5m short term working capital to manufacture stock to meet forecasted customer demand.


NZEC provided the BNZ with a Loan Guarantee so they could provide USD $2.5m in funding to G Tech Group.

"...maintaining cash flow throughout a period of growth can be a challenge and that's where the assistance of NZEC and our bank has been invaluable". Geoff Carston, GM 

New Zealand Export Credit's Loan Guarantee supports the BNZ to provide additional short term funding to G Tech Group

When rendering and separating manufacturer, G Tech Group (G Tech), encountered increased demand for decanter centrifuges from multi-national oil and gas customers, they faced additional short-term working capital requirements.

New Zealand Export Credit (NZEC) was approached by the BNZ and G Tech to provide a Loan Guarantee to support a USD $2.5m short-term working capital facility to meet G Tech's need.

The need was driven largely by US customers who demand consistent and immediate availability of the high-value decanter centrifuges. This required constant manufacturing by G Tech in both their New Zealand and US factories, to enable them to have stock available for purchase when required.

Established in Belfast, Christchurch, in 1989, G Tech has a new US manufacturing and service facility in Texas, where G Tech owners Kevin Bell and Sarah Morgan now reside. Having a local presence in the US has proved invaluable in establishing strong relationships with the multi-national companies that use Houston, Texas, as a hub for their international oil and gas operations.

G Tech's manufacturing process involves significant highly-skilled labour and third-party products from New Zealand and offshore suppliers, with long lead times resulting in a working capital cycle of up to 210 days.

With support from NZEC, the BNZ was willing to provide an additional USD $2.5m short-term facility, with G Tech utilizing the facility when required to meet manufacturing costs.

"We're confident of our technical ability to deliver as we have manufactured significant numbers of decanter centrifuges that are gaining international market acceptance", said Geoff Carston, G Tech New Zealand GM. "But with client expectations to have product available, maintaining cash flow throughout a period of growth can be a challenge and that's where the assistance of NZEC and our bank has been invaluable.  Thanks to our reputation for designing and building world-class centrifuges, our latest decanter -- much larger than the current unit -- has been well received in the oil and gas market. We expect this new machine to play a significant role in our future growth."

"We are pleased to support G Tech's growth in the US market, by supporting the BNZ to provide increases in short-term working capital availability during a challenging period of growth" said Chris Chapman, Manager of NZEC.

Matt Eaden, a Corporate Partner with the BNZ, noted "the NZEC loan guarantee has provided the support we need to continue to fund G Tech-Bellmor's growth aspirations in the USA."

A loan guarantee from NZEC to an exporter's bank guarantees repayment of amounts that the bank lends to the exporter to finance one or more export contracts for export growth-related borrowing.

For background on the G Tech Group refer to a previous article on G Tech Group use of NZECO Short-Term Trade Credit Insurance.