Michael Kendal is an inward investment manager at Tees Valley Unlimited who promotes Tees Valley in the UK as a business location. Tees Valley seeks to attract automotive suppliers and has had some success, with key industries like chemicals that support the automotive sector. Mr. Kendal works with organizations like the SMMT and Automotive Council to increase awareness of opportunities in Tees Valley and cooperates with neighboring regions like Sunderland to support the regional automotive supply chain.
1. INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 1 of 6
BBBByyyy Simon Warburton | 31 October 2013 Font size
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"A lot of base chemicals manufactured within Teeside will
migrate through the supply chain"
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IIIINNNNTTTTEEEERRRRVVVVIIIIEEEEWWWW:::: TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy UUUUnnnnlllliiiimmmmiiiitttteeeedddd iiiinnnnwwwwaaaarrrrdddd
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Michael Kendall is an inward
investment manager at Tees Valley
Unlimited, the Local Enterprise
Partnership for Darlington,
Hartlepool, Middlesbrough, Redcar &
Cleveland as well Stockton on Tees.
He talked to Simon Warburton at the
SMMT's recent 'Meet the Funder' day
near Birmingham.
9
He has worked to promote Tees
Valley as the preferred business
location for inward investment for
more than six years supporting potential investors across all sectors from initial enquiry, to
identifying sites and infrastructure connections, securing funding for capital investment, training
support and ultimately providing an investor aftercare service to ensure the company is
successfully embedded into the area.9
9
Prior to joining Tees valley Unlimited, Michael was inward investment manager at Scottish
Enterprise in Lanarkshire and has more than four years experience as a senior consultant at OCO
Consulting in Belfast.
Tees Valley is a region of North East England known for its petrochemical industry, but which has
been looking to attract suppliers wanting to do business in this area of the UK that is proving
increasingly a hotbed of automotive skills.
The region and the wider North East, have gone from a virtual standing start 25 years ago, to
being the site of Nissan production to hosting a plethora of suppliers in a regional cluster.
Tees Valley recently formed part of a group of exhibitors at the Society of Motor Manufacturers
and Traders (SMMT) annual Meet the Funder day near Birmingham, designed to bring suppliers
and UK financial institutions together.
j-aaaa:::: WWWWhhhhaaaatttt rrrreeeellllaaaattttiiiioooonnnnsssshhhhiiiipppp ddddoooo yyyyoooouuuu hhhhaaaavvvveeee wwwwiiiitttthhhh tttthhhheeee SSSSMMMMMMMMTTTT,,,, aaaassss wwwweeeellllllll aaaassss tttthhhheeee AAAAuuuuttttoooommmmoooottttiiiivvvveeee CCCCoooouuuunnnncccciiiillll aaaannnndddd hhhhoooowwww
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2. INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 2 of 6
MK: We have been developing contacts within the Automotive Council - within the Supply Chain
Grouping. We held a workshop looking at barriers to entry on behalf of the North East.
There were four workshops across the UK and we were one of those - that fed into the industrial
strategy.
We have been target [ing] awareness around Tees Valley and the North East. It is very high on the
SMMT's agenda in terms of showcasing the support.
[The] SMMT embraced us with open arms because clearly they want to push the opportunity out.
They realise people on the ground had contacts and we meet companies on a regular basis.
We are a Local Enterprise Partnership of five local authorities and it is a model that has not been
too painful in terms of establishment.
j-aaaa:::: HHHHaaaassss tttthhhheeeerrrreeee bbbbeeeeeeeennnn mmmmuuuucccchhhh OOOOEEEEMMMM aaaaccccttttiiiivvvviiiittttyyyy tttthhhhaaaatttt hhhhaaaassss ttttrrrriiiiggggggggeeeerrrreeeedddd ccccoooommmmppppoooonnnneeeennnntttt aaaaccccttttiiiivvvviiiittttyyyy iiiinnnn TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy????
MK: OEM investments were creating investment at a supply chain level. Things were happening
on our own patch, which at an economic development level, were creating change.
There is a responsibility to be cohesive and to ensure we involved in responding to opportunity,
maybe [by] bringing other SMEs.
j-aaaa:::: HHHHoooowwww mmmmaaaannnnyyyy ccccoooommmmppppaaaannnniiiieeeessss iiiissss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy iiiinnnn ccccoooonnnnttttaaaacccctttt wwwwiiiitttthhhh????
MK: There are 120 core companies we deal with and we deal with smaller entities alongside that
and linking Tees Valley to the national agenda.
j-aaaa:::: HHHHoooowwww ddddooooeeeessss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy sssseeeeccccuuuurrrreeee ffffuuuurrrrtttthhhheeeerrrr iiiinnnntttteeeerrrreeeesssstttt iiiinnnn iiiittttssss rrrroooolllleeee????
MK: We are looking at these events [Meet the Funder] to make sure there is awareness at a local
level. We are showing willingness to get involved with the Advanced Manufacturing Supply Chain
Initiative arrangements - it is building momentum around it.
We [also] benefit from national schemes such as the automotive zones enhanced capital
allowance sites [tax relief] with plant and machinery.
j-aaaa:::: WWWWhhhhaaaatttt aaaarrrreeee ssssoooommmmeeee ooooffff tttthhhheeee kkkkeeeeyyyy iiiinnnndddduuuussssttttrrrriiiieeeessss iiiinnnn TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy tttthhhhaaaatttt rrrreeeellllaaaatttteeee ttttoooo tttthhhheeee aaaauuuuttttoooommmmoooottttiiiivvvveeee sssseeeeccccttttoooorrrr????
MK: Nissan is very much the notable name in the North East and we see other benefits for the
region as part of that.
A lot of base chemicals manufactured within Teeside will migrate through the supply chain -
there is an underpinning aspect to that - it is critical. Chemicals is key for us as it underpins the
automotive industry in the UK.
j-aaaa:::: HHHHoooowwww ddddooooeeeessss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy ccccoooommmmppppeeeetttteeee ffffoooorrrr bbbbuuuussssiiiinnnneeeessssssss wwwwiiiitttthhhh tttthhhheeee SSSSuuuunnnnddddeeeerrrrllllaaaannnndddd rrrreeeeggggiiiioooonnnn jjjjuuuusssstttt uuuupppp tttthhhheeee rrrrooooaaaadddd????
MK: We want to support them [Sunderland]. Companies do not see local boundaries - they see
supply chains.
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3. INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 3 of 6
We have got a working relationship with Sunderland, because we recognise the economic value
of that relationship.
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Nissan Motor Co., Ltd.
- Strategy and SWOT
Report
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Cummins Inc. (CMI) -
Financial and
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MK: Within the Department for Business, Innovation & Skills, we are seen as a model because of
what we have managed to achieve. We have been quite successful.
Some of that has happened gradually and some of that has happened because of our own
efforts.
Key companies in Tees Valley that are involved with the automotive sector include: Caterpillar;
Gestamp Tallent; Nifco; Millfield Composites; TMD Friction Group; Paragon Rapid Technologies;
Katmex; Cummins; Esco; ElringKlinger and Esterline.
The UK government has committed more than GBP316m (US$507m) to automotive sector
projects through the Regional Growth Fund (RGF), almost GBP80m of public and private
investment through the Advanced Manufacturing Supply Chain Initiative (AMSCI) and more than
GBP180m to support collaborative R&D through the Technology Strategy Board.
Businesses based in the Tees Valley can apply for short-term finance to fund performance and
warranty bonds from the GBP10m Tees Valley Catalyst Fund.9
9
The Fund helps Tees Valley businesses bid for new contracts by providing short-term debt
investments from GBP100,000 to GBP2m to fund short-term advanced payment guarantees,
performance and warranty bonds as well as extend existing bond facilities. Finance will typically
be available for up to 24 months.
There is also the North East Growth Plus Fund, which can9structure deals between GBP350,000
and GBP1.25m in a single round in SMEs based in the North East of England, namely,
Northumberland, Tyne and Wear, Durham and the Tees Valley.
www.teesvalleyunlimited.gov.uk//@TVU_LEP
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4. INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 4 of 6
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6. INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 6 of 6
577423.
VAT No: GB785642391. Registered in England No: 4307068.
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![INTERVIEW: Michael Kendal - Tees Valley Unlimited Page 2 of 6
MK: We have been developing contacts within the Automotive Council - within the Supply Chain
Grouping. We held a workshop looking at barriers to entry on behalf of the North East.
There were four workshops across the UK and we were one of those - that fed into the industrial
strategy.
We have been target [ing] awareness around Tees Valley and the North East. It is very high on the
SMMT's agenda in terms of showcasing the support.
[The] SMMT embraced us with open arms because clearly they want to push the opportunity out.
They realise people on the ground had contacts and we meet companies on a regular basis.
We are a Local Enterprise Partnership of five local authorities and it is a model that has not been
too painful in terms of establishment.
j-aaaa:::: HHHHaaaassss tttthhhheeeerrrreeee bbbbeeeeeeeennnn mmmmuuuucccchhhh OOOOEEEEMMMM aaaaccccttttiiiivvvviiiittttyyyy tttthhhhaaaatttt hhhhaaaassss ttttrrrriiiiggggggggeeeerrrreeeedddd ccccoooommmmppppoooonnnneeeennnntttt aaaaccccttttiiiivvvviiiittttyyyy iiiinnnn TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy????
MK: OEM investments were creating investment at a supply chain level. Things were happening
on our own patch, which at an economic development level, were creating change.
There is a responsibility to be cohesive and to ensure we involved in responding to opportunity,
maybe [by] bringing other SMEs.
j-aaaa:::: HHHHoooowwww mmmmaaaannnnyyyy ccccoooommmmppppaaaannnniiiieeeessss iiiissss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy iiiinnnn ccccoooonnnnttttaaaacccctttt wwwwiiiitttthhhh????
MK: There are 120 core companies we deal with and we deal with smaller entities alongside that
and linking Tees Valley to the national agenda.
j-aaaa:::: HHHHoooowwww ddddooooeeeessss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy sssseeeeccccuuuurrrreeee ffffuuuurrrrtttthhhheeeerrrr iiiinnnntttteeeerrrreeeesssstttt iiiinnnn iiiittttssss rrrroooolllleeee????
MK: We are looking at these events [Meet the Funder] to make sure there is awareness at a local
level. We are showing willingness to get involved with the Advanced Manufacturing Supply Chain
Initiative arrangements - it is building momentum around it.
We [also] benefit from national schemes such as the automotive zones enhanced capital
allowance sites [tax relief] with plant and machinery.
j-aaaa:::: WWWWhhhhaaaatttt aaaarrrreeee ssssoooommmmeeee ooooffff tttthhhheeee kkkkeeeeyyyy iiiinnnndddduuuussssttttrrrriiiieeeessss iiiinnnn TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy tttthhhhaaaatttt rrrreeeellllaaaatttteeee ttttoooo tttthhhheeee aaaauuuuttttoooommmmoooottttiiiivvvveeee sssseeeeccccttttoooorrrr????
MK: Nissan is very much the notable name in the North East and we see other benefits for the
region as part of that.
A lot of base chemicals manufactured within Teeside will migrate through the supply chain -
there is an underpinning aspect to that - it is critical. Chemicals is key for us as it underpins the
automotive industry in the UK.
j-aaaa:::: HHHHoooowwww ddddooooeeeessss TTTTeeeeeeeessss VVVVaaaalllllllleeeeyyyy ccccoooommmmppppeeeetttteeee ffffoooorrrr bbbbuuuussssiiiinnnneeeessssssss wwwwiiiitttthhhh tttthhhheeee SSSSuuuunnnnddddeeeerrrrllllaaaannnndddd rrrreeeeggggiiiioooonnnn jjjjuuuusssstttt uuuupppp tttthhhheeee rrrrooooaaaadddd????
MK: We want to support them [Sunderland]. Companies do not see local boundaries - they see
supply chains.
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