Two Teesside businesses have been awarded a £20m cash boost.
Chemical company, Chemoxy International and waste-management firm J&B Recycling have each secured £10m in capital from the Business Growth Fund, a £2.5bn fund back by the UK’s five big banks.
And Chemoxy has secured a further boost after it also secured an additional £10m in working capital from the RBS bank.
Chemoxy, based in Middlesbrough, will use the new funding package to make further investments in capital and plant over the next four years in order to increase capacity.
It intends to expand its product and service range and hopes to more than double revenue to £100m by 2020.
Chief Executive Ian 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.”
The firm was created following a management buyout of Dow Chemical in 2011. It works with blue-chip companies across the chemical, agricultural, retail and oil and gas industries.
Since the buy-out by Mr Stark and chief operating officer Martyn Bainbridge, turnover has increased from £34m to £50m within three years.
The company has already invested £10m in new machinery and has acquired new land at its Billingham site in preparation for future growth. Chemoxy now employs more than 130 people.
Chemoxy makes solvents for products ranging from petrochemicals to fragrances. It manufactures its own low toxicity solvent, Coasol, which is sold to paint companies all over the world, and also runs a solvent recycling business.
J&B Recycling, a waste management firm also secured £7.5m investment from the Business Growth Fund, which is backed by Barclays, Lloyds, HSBC, RBS and Standard Chartered.
New jobs will be created at the recycling firm, which operates from a waste transfer station in Middlesbrough and two recycling facilities in Hartlepool.
The company is run by Vikki Jackson-Smith, who established the recycling business in 2000 to diversify from the solid fuel business that her father Alan Jackson had originally established in the 1970’s.
Since then, the business has grown to an annual turnover of £10m and employs 175 people.
She said: “I am delighted J&B has secured a significant investment from BGF to help execute our very exciting growth plans.
“J&B has always viewed itself as an innovator within the industry, from our early days of recycling glass bottles to the development of our state-of-the-art materials recycling facility.
“This investment will further enhance our reputation as we look to collect, recover and recycle more and more waste to put to new uses.”
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