Chemoxy, a Teesside-based company, manufactures solvents of an environmentally friendly nature. It also makes other industrial grade chemicals and has recently managed to earn £10 million as growth capital from a £2.5 billion fund that was created by the five biggest banks in the U.K. The deal will let Chemoxy increase its overall capacity at its two factory outlets.
The investment was provided by the Business Growth Fund. If used wisely, it could allow Chemoxy to double its revenues by 2020.
The company was acquired from Dow Chemicals in 2011. Chemoxy works with blue-chip businesses in the industries of oil and gas, retail, agricultural, chemical and gas industries.
Turnover increased to £50 million from the previous £34 million in the three years that followed the management buy-out by executive Ian Stark and the CEO Martyn Bainbridge.
The company has already invested £10 million till date in new machines. It has purchased new land close to its site in Billingham in order to prepare for future growth. More than 130 people have been currently employed by Chemoxy.
The company from Middleborough manufactures solvents for products that vary from fragrances to petrochemicals.
Chemoxy also creates its own range of low toxicity solvents, Coasol, and sells it to companies that manufacture paints around the world. The company also runs its own solvents recycling business.
As one of the largest chemical manufacturers in the U.K., Chemoxy exports nearly 60 per cent of its products.
Apart from the investment by BGF, Chemoxy has also secured another £10 million in working capital from RBS. The BGF funding is supported by Standard Chartered, RBS, HSBC, Lloyds, and Barclays.