The company behind a stalled wonder construction product manufacturing site in Hull may seek new partners to deliver it, should it prove viable.
Owner Accsys Technologies put the Tricoya plant on hold immediately after buying out other consortium members as costs spiralled, with a significant proportion of the infrastructure up at Saltend. Now it has revealed that discussions with potential third parties are ongoing as the board evaluates funding options, ahead of a decision on whether to eventually proceed.
Directors in the Anglo/Dutch-listed company had previously estimated the cost could now double the initial capital investment outlined when the high-tech first-of-a-kind plan was first brought forward. Located on the PX Group site, there are hopes for scores of high skilled jobs, with the plant is set to combine chemistry and technology to create high performance, sustainable wood-based building products. A similar operation in Arnhem, Holland, is now delivering strong growth, with a US site anticipated to open next March.
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Build-out in Hull started before Covid, with principal contractor Engie Fabricom declaring a 'force majeure' during the pandemic. The project, brought forward in 2017, was taken in-house, but hit an impasse when those involved in the joint venture declined to add further funds to meet the anticipated £120 million investment required. The company has now said there are “no indications” of further cost hikes. First expectations had been for production to start in 2019, with the issues leading to an eventual revised July 2022 date, but further challenges then emerged.
November saw Accsys buy out the interests of Ineos, Medite, BGF and Volantis in a deal valued at £8.4 million, as they took a minority shareholding in the overall company. Work was immediately paused for a minimum period of six months.
A statement to the City on the future for Tricoya Hull, read: “The board continues to assess the economics and capability of the plant and its potential returns on investment. In parallel, the board is also evaluating funding options, as outlined in previous company announcements, which include discussions with potential third-party partners and contractors.
“Verification of the final cost and time to complete the plant is ongoing, and while it is too early to give an exact figure, there are no indications that this will exceed the up to €35 million (£30m) previously identified by the company.
“The board of Accsys continues to see the market potential of Tricoya and will consider all relevant commercial factors in deciding whether or not to proceed with the Hull plant and if so, on what basis.”
Chief executive Rob Harris last month announced he was leaving Accsys, which just reported revenues of £95.9 million for the first nine months of its financial year. He remains in position until March 31. Finance director William Rudge, who had announced he was to leave after 12 years with Accsys in August, will stay on for a further “short period of time” to support the company with the process to recruit for both positions ongoing.
The company said “good progress” in the recruitment of a new chief executive was being made.
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