Funding deal agreed for £59m Hull plant

A funding package has been secured for a pioneering new €68m (£58.8m) plant in Hull with the Business Growth Fund (BGF) among the backers.Chemical technology group Accsys has entered into agreements to build, operate and finance the world’s first Tricoya wood chip manufacturing plant. The facility will be located in Saltend Chemical Park.Tricoya products demonstrate enhanced durability which allow them to be used in applications such as joinery, decking and structural engineering that were once limited to tropical hardwood or man-made products.A Tricoya Consortium has been established to fund, build and operate the Hull plant. Pre-construction engineering and design was finished in 2016 and its work is expected to be completed by early 2019.Comprehensive financing arrangements are now in place to fund the factory.BGF Quoted has provided funding alongside BP and Medite, the Irish MDF producer, which will own and operate the new site in Hull together with Accsys. Henderson Volantis and RBS are also supporting the venture.BGF and Volantis will invest an aggregate of £19m, with BGF accounting for £12m of the total.