Paul Clegg, Accsys Technologies chief executive
Accsys Technologies is opening the world’s first Tricoya® wood chip manufacturing plant in Hull after securing £12m in funding from the Business Growth Fund.
The £12m investment will allow London-headquartered Accsys, which is a global leader in the development and manufacture of modified wood products, to open a new Hull plant and extend its existing plant in the Netherlands.
BGF Quoted has provided the funding alongside BP and Medite, the Irish MDF producer, who will own and operate the new site in Hull together with Accsys. Henderson Volantis and RBS are also supporting the venture.
Medite and Accsys have been working together since 2012 to extend Accsys’ patented acetylation process – whereby soft wood is transformed into a strong, rot-proof, and durable material that is rivalling tropical hardwood – across new products and markets. The new site in Hull will be the world’s first plant to produce acetylated wood chips for use in specialised MDF panels.
At the same time, Accsys is significantly expanding its manufacturing capacity at its plant in Arnhem, the Netherlands, to meet substantial and growing demand for its products. Group sales have increased by 10% for the 10 months to 31 January, due to a growing customer base for its Accoya and Tricoya branded products which are used in joinery, decking, structural engineering and more. Over time, the Arnhem plant is being expanded to c.80,000 cubic meters, almost doubling its current capacity.
Paul Clegg, Accsys Technologies chief executive, said: “We are delighted to be moving forward with 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, and new financial backing from BGF, Henderson 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.”
The funding from BGF Quoted consists of c.£10m to Accsys Technologies plc and c.£2m to support the joint venture between Accsys, BP and Medite.