Advance Notice - Advanced Manufacturing Supply Chain Initiative

A fund of up to £125m has been established with the aims of helping existing supply chains grow and achieve world class standards while encouraging major new suppliers to set up and manufacture here.

The initiative is based on an existing bid to the Government’s Regional Growth Fund (RGF) led by a consortium of four Local Enterprise Partnerships (LEPs) and Birmingham City Council which focussed on the automotive and aerospace sectors. This initiative is building on the successful RGF bid put forward by this consortium but now has a much wider remit in terms of geographical and sectoral coverage.

The fund will support applications that deliver economic growth. They should be in established advanced or high value manufacturing sectors, or in newer growth areas where the UK is well placed to take a global lead, such as energy renewables and other low carbon sectors. It provides a flexible approach to funding (grants and loans) and is designed to promote closer collaboration within the supply chain and to address market failures. A market failure is where the market, by itself, is not leading to an economically efficient outcome. In practical terms funding will be available to support the following areas, subject to the normal State Aid rules:

* the purchase of capital equipment

* R&D activity which improves manufacturing equipment, systems or processes

* specific training and skills development to support the project.

The initiative aims to support projects which are of a sufficient size to make a significant impact on supply chains, ultimately awarding funding of at least £2 million to successful bidders. Supply chain companies with projects that require funding below the threshold should consider entering a consortium with others who are also seeking support.

Single company applications and applications below the threshold award value will be eligible for funding (grants or loans) in the automotive or aerospace sectors which are located in the four LEP areas from the existing, successful RGF bid.

Technology Strategy Board will play a key role in the registration and processing of applications and in the coordination of the assessment of applications against the set criteria. The outcome of the assessment process will be presented to an independent Investment Board which will take the final decisions to select successful bidders.

Beneficiaries must be located in England, although we are in discussion with the Devolved Administrations as to whether support for companies based elsewhere within the UK may be available for successful bids, where appropriate.

Information on opening and closing dates, the competition brief and guidance for applicants will be available here shortly.

For further details download the Advance Notice document here

Email: competitions@innovateuk.org