Funding secured for world’s first Tricoya chip plant in Hull29 March 2017
Modified wood producer Accsys Technologies has secured €68m funding to build, operate and finance the world’s first Tricoya modified wood chip manufacturing plant in Hull.
Accsys also has additional funding to expand the plant in Arnhem, Netherlands to bring Accoya modified wood annual production capacity up to 60,000m3 in a project costing €22m.
The significant increase in manufacturing capacity will allow Accsys to meet demand from the “substantial and growing markets” for Accoya and Tricoya globally.
The Tricoya chip plant will be built at Saltend Chemical Park, Hull, with funding arranged from a combination of debt and equity from BP, Medite, BGF and Volantis and debt from RBS.
Tricoya modified wood chips are used in the production of modified wood panels, such as Medite’s Tricoya Extreme MDF, which due to its modification through an acetylation process enables the products to be used in external applications.
Pre-construction engineering and design work for the Hull Plant was finished in 2016 and its construction is expected to be completed by early 2019.
The Hull Plant is expected to have an initial capacity of 30,000 metric tonnes of acetylated Tricoya chips per annum, enough to produce approximately 40,000m3 of Tricoya panel products per annum.
The plant is expected to reach a breakeven position at approximately 40% design capacity. It is expected to take approximately four years to reach full capacity following completion after which there will be scope for expansion. The modular design of the Hull Plant is expected to allow for an efficient expansion when market conditions dictate.
Completion of the first stage of expansion at the Arnhem Accoya plant is expected by the end of 2017.
Meanwhile, a trading update released by Accsys shows total revenue for the company in the 10 months from March 31, 2016 to January 31, 2017 increased by 10% to €45.3m.
Sales volumes of Accoya in the same period reached 31,599m3, an increase of approximately 20% on a year ago. Tricoya sales volumes grew to 5,245m3 in the full year 2016, up from 4,150m3 in 2015.
A loss before interest, tax, depreciation and amortisation of €1.3m was recorded for the six months ended September 30, due to lower licence related income, a change in timing of the annual maintenance stop, a new pricing regime with Solvay Acetow and higher costs associated with the Tricoya Consortium.