Two Scottish firms working in the gas and oil industry have secured £5 million financing for future developments, which is seen as further evidence of the strength of the sector.
The financing has been provided through public funding, from both the UK government and the Holyrood supported Scottish Enterprise venture.
A fund of £3.25 million has been made available to Edinburgh-based chemical corrosion management firm LUX Assure, with the money being used to fund expansion plans.
A further £2.25 million has been received by Aubin, an industry research firm based in Ellon. The money will be used for new research projects. The company has recently developed a new gel-based cleaner in its own laboratory, which can be used for cleaning thin or sharply bent pipelines.
The firm presently employs around 20 people, and in the last tax year generated sales amounting to over £5 million.
The funding will be a huge boost to both firms, as many Scottish companies look to expand in various sectors. Some, preferring to steer clear of further debt, are doing this with alternative financing methods, such as invoice discounting and factoring.
The additional support gained from a commercial finance broker is also helping firms to not just move forward, but also uncover further opportunities through tie-ins with interested investors.
The funding for LUX Assure and Aubin shows there is still great interest in the gas and oil industry in the UK, from both governments. Of the two previous investments in Scotland from the fund, one of these was also in the gas and oil industry.