Chemical technology group secures £59m funding deal to build Hull manufacturing plant

Accsys Technologies plc has secured a €68m (£59m) funding package for a new manufacturing plant in Hull.

The chemical technology group entered into agreements to build, operate and finance the world’s first Tricoya wood chip manufacturing plant, which will be located in Saltend Chemical Park.

Comprehensive financing arrangements are now secured to fully fund the building of the Hull facility.

BGF has provided £12m of funding, alongside BP and Medite, the Irish MDF producer, which will own and operate the new site in Hull together with Accsys. Henderson Volantis and RBS are also supporting the venture.

The new site in Hull will be the world’s first plant to produce acetylated wood chips for use in specialised MDF panels.

The funds will also be used to expand Accsys existing Accoya facility in the Netherlands.

Accsys, headquartered in London, specialises in the development and manufacture of modified wood products used by construction and timber companies around the world.

Paul Clegg, chief executive of Accsys, commented: “We are delighted to update our shareholders on these two transformational projects to secure new manufacturing capacity for Tricoya wood elements and additional capacity for Accoya solid wood.

“These developments will allow us to take advantage of the growing market opportunity for both Tricoya and Accoya which we believe to be substantial with demand continuing to grow for both products.

“Our ongoing relationship with industry leaders, BP, Medite and Solvay Acetow, and new financial backing from BGF, Volantis and RBS, are a strong endorsement of Accsys’ unique expertise and technologies. As a result, we are extremely well placed to capitalise on the significant growth potential.

Stephen Welton, CEO of BGF, added: “We are very pleased to be supporting Accsys’ ambitious growth strategy which includes the building of the new plant in Hull alongside BP and Medite.

“This funding once again demonstrates BGF’s ability to provide patient capital alongside other investors to help accelerate growth in the brightest companies on AIM.”

The funding from BGF Quoted consists of £10m to Accsys and £2m to support the joint venture between Accsys, BP and Medite.

The BGF Quoted investment was led by Joe Wilson, Tom McDonnell, Tom Jenkins and Paul Stevens.