Chemoxy receives £20m capital investment from BGF and RBS
Company has seen as estimated £16m increase in turnover since 2011 acquisition by Dow Chemicals
Teeside-based specialty chemical manufacturer Chemoxy has received £10m growth capital funding from both the Business Growth Fund (BGF) and Royal Bank of Scotland (RBS), resulting in a £20m funding package.
The independent contract and chemical manufacturer services a range of large blue-chip companies in the chemical and oil and gas industry from its two sites in Teeside and employs more than 130 chemical engineers and apprentices, 32% of which are graduate and PhD students.
The company estimates that around 60% of chemicals produced or processed at the two sites are shipped to international markets. It also has a portfolio of low-toxicity solvents such as its Coasol range, which is used in environmentally friendly paints, industrial coatings and cleaning products.
After an acquisition by Dow Chemicals in 2011 – led by chief executive Ian Stark and chief operating officer Martyn Bainbridge – the business has seen rapid growth, with an increase in turnover from around £34m to around £50m currently.
More than £10m has been invested by the team to date, helping acquire new plant and land at the Billingham site to prepare for future expansion.
With ambitions to grow revenue to in excess of £100m by 2020, Chemoxy will use the finance to make further capital and plant investments over the next four years to increase capacity, expand its product and service range and accelerate growth.
Stark commented: “This funding package supports our long-term ambitions for Chemoxy, with growth capital empowering us to expand the business without relinquishing control over the management or direction of the firm. At the same time, we are looking forward to drawing on new ideas and expertise.”
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BGF’s Barry Jackson said: “Chemoxy is a well invested business with significant potential for growth in a number of different areas. We are delighted to now be a partner in the company and assist the Chemoxy team in achieving the next stage of growth.
“Teesside and the North East continue to demonstrate strong demand for growth capital with Chemoxy being our third investment in the last 12 months in the region.”