OGTEC
OGTEC is a solution integrator and engineering business that provides full end-to-end project delivery of resource recovery systems to the waste and recycling industry.
Need
In order to provide security for an advance payment and deliver a contract with a global leader in the packaging, paper and resource recovery, in conjunction with a City Council, OGTEC needed finance.
Solution
We provided a security bond that allowed the business to receive the advance payment and fulfil the contract requirements.
When Sydney-based business OGTEC had the opportunity to deliver a large contract in New Zealand, we were able to support with an advance payment bond.
Recycling is a vital tool in the fight against waste and helps reduce landfill and associated pollution. OGTEC is a key player in the resource recovery space, creating systems that can recycle a range of household and construction site materials such as co-mingled, construction and commercial waste streams.
Senan O’Grady, Managing Director, OGTEC explained that the business mainly works with waste, recycling and resource recovery companies that wish to improve their processes to recover more material and divert material from landfill.
“If I’d known about Export Finance Australia sooner, I’d have come to you and saved myself a couple of weeks of looking elsewhere. It worked really well for us, and we will definitely look to use it again in the future.”
Senan O’Grady
Managing Director, OGTEC
“The business has seen strong growth over the past three years, which can be attributed to the excellent customer relationships that have been developed.” highlighted Senan.
An opportunity to export
After building a strong presence domestically in Australia, the business was keen to export its solutions within the Asia Pacific region. In 2019, a tender was released for a recycling solution to improve the recovery and quality of yellow bin recycling of about 135,000 tonnes. Twelve months later, OGTEC was awarded the contract.
“The client’s core issue was that they were using an old and outdated system for material recovery. OGTEC would design, manufacture and install an advanced solution that would improve the paper recovery and quality,” explained Senan.
The project provided OGTEC with an opportunity to expand its business through exporting. It would also help boost its reputation internationally.
“One of the key things about our space is that you're largely judged on projects you've delivered,” said Senan. “So having a plant up and running with a very reputable customer would allow us to drive new business.”
How we could help
OGTEC’s client was willing to provide a deposit of $1 million to enable the business to cover its costs of fulfilling the initial part of the contract. However, OGTEC needed some security against that deposit.
“Our funds were tied up in other projects, and an unsecured loan would be too expensive,” Senan said.
It was suggested to Senan that he contact us to find out if we could support OGTEC with an advance payment bond. After the business got in touch with our team, we explained the application process. Senan was impressed at how easy it was.
“We were pretty well prepared, we had all the paperwork that Export Finance Australia required,” Senan highlighted. “We had a conditional approval for the bond within a week.”
An ongoing impact
After securing the bond, OGTEC successfully fulfilled its New Zealand contract and has since received requests for quotes for three more New Zealand-based projects.
OGTEC has had strong growth in the last three years, and through partnering with financiers like Export Finance Australia, Senan said that the business will continue to prosper.
Reflecting on the experience working with Export Finance Australia, Senan said he would definitely recommend other businesses reach out for support. He was also impressed at the breadth of different types of projects that we could support and shared that he would definitely look to work with Export Finance Australia again in the future.
