A NORTH-EAST chemicals firm has secured a £20m cash injection to drive forward its growth plans.

Three years since they led a management buy-out bosses at Teesside-based Chemoxy, have received a £10m growth capital investment from BGF (Business Growth Fund). In addition, The Royal Bank of Scotland (RBS) via its Complex Transaction Execution team in will be providing £10m working capital facilities taking the total funding package to £20m.

BGF, an investor in growing companies, has backed 26 British manufacturing businesses in the past three years, including two of Chemoxy’s neighbouring businesses, waste management firm J&B Recycling and house builders, Cussins, have also secured BGF funding.

Chemoxy, which operates from sites in Middlesbrough and Billingham, is one of the UK’s leading contract chemical manufacturers, supplying some of the biggest names in the oil and gas industry.

In addition, it has developed its own range of low-toxicity solvents used in environmentally friendly paints, industrial coatings and cleaning products.

The business has experienced rapid growth since it was acquired from Dow Chemicals in an MBO led by chief executive Ian Stark and chief operating officer Martyn Bainbridge, increasing turnover from £34m to about £50m.

To date, the team has invested more than £10m in new plant and acquired new land at their Billingham site in preparation for future growth.

Chemoxy employs more than 130 people including chemical engineers and apprentices, of which 32 per cent are graduates/PHDs. Its international presence continues to grow with around 60 per cent of the chemicals produced or processed at the two sites shipped to overseas markets.

The business will use the new funding package to make further investments in capital and plant over the next four years in order to increase capacity, expand its product and service range and drive growth. Chemoxy’s management team has an ambition to grow revenue to in excess of £100m by 2020.

Mr Stark, said: “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.”

Barry Jackson, of BGF, 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.”