New year could decide fate of stalled Tricoya plant in Hull as investor update given

A decision on whether to proceed with a wonder construction material manufacturing plant at Saltend looks set to be made in the new year.

The Tricoya site, developed by Anglo-Dutch entity Accsys, has been on hold for the past 12 months after costs escalated in construction and anticipated operations, leading to partners pulling out.

Designed to produce next generation MDF with chemical and technological advances applied to timber, the anticipated investment doubled from an initial £59 million to at least £120 million . It suffered significant delays through Covid when the contractor declared a force majeure and walked away. The company had hoped to complete last July, but the timeline drifted ahead of the pause, with a completing US site, for Accoya – a treated pine material – now overtaking it.

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In the latest trading update from the company, which hopes to create 30 jobs there, it said: “While Accsys continues to believe in the market potential for Tricoya, in view of the current operating environment and shift of company focus on the Accoya plant in Kingsport, US, the board is undertaking a review of the viability, strategic interest and financial capabilities of its Tricoya UK plant in Hull. The review will be conducted in early calendar year 2024.”

The US plant is due to enter production in mid-2024, with the company currently producing from its expanded site in Arnhem, Holland. The past six months saw a 21 per cent growth in revenue to £61.9 million, but margins have been squeezed due to higher prices for raw materials, increased set-up costs in the US and operating costs at Saltend.

Funding options have been a focus on previous trading updates, as well as securing new partners, with a further £30 million understood to be required. However, this week’s City announcement detailed a new share placing, with £24 million brought in to complete the US plant, strengthen the balance sheet and increase working capital “in the face of a challenging macro trading environment”.

Original artice – https://business-live.co.uk/all-about/yorkshire-humber

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