MEDICAL technology companies could be lured to Monmouthshire in a bid to create a successful industry hub in the county.

Monmouthshire County Council has been approached by corporate firm Capital Kinetics to develop a business incubator facility and boost the healthcare technology sector.

Under the proposals, Monmouthshire Med Tech (MMT) would be based at the council’s former Innovation House offices in Magor.

Once up and running, around 15 companies will be offered small loans from the council’s £50 million investment fund.

The approach by London-based Capital Kinetics has been described as a “rare proposition” by Monmouthshire’s chief enterprise officer Frances O’Brien.

“MMT will advocate for the county as a great place for this type of business, to start, locate and grow,” says a report to cabinet members.

“It will give identity to this sector and become central to an emerging eco-system fuelled by a number of successful companies already based here.

“This is a high growth market which offers potential for above average salaries and formation of wealth creating businesses.


“With a Cardiff Capital Region City Deal, a toll free M4 motorway and moves afoot to develop a functional area economic region and relationship on both sides of the estuary, the county now finds itself being a very desirable location for company formation and growth.”

Work to establish MMT in Magor began in November 2018, but it will be launched as a nine-month pilot once approved by cabinet, with a view to extend it into the long term if successful.

Capital Kinetics, which is said to have “significant” knowledge within the med tech industry, will be tasked with recruiting and assessing target companies from UK and international markets.

The report says Monmouthshire is already home to several med tech companies, including Creo Medical in Chepstow.

Business loans will be for no more than £25,000 and no longer than a year, with each firm assessed by a steering group before recommendations are made to the council’s investment committee.

Up to 100 companies could be assessed at one time before being whittled down by councillors, according to the report.

Monmouthshire council will be asked to spend £100,000 on start-up costs, with £50,000 going towards office set-up and a £50,000 one-off fee to Capital Kinetics as partners.

The report says: “Capital Kinetics have already invested significant time pro bono in developing a specific concept and brand.

“The pilot arrangement sum of £50,000 is the council’s worst case exposure if the proposition fails.”

Cabinet members will consider the report on July 31.