Funding for the investment plan has been secured via a £20m increase in share capital – which has been welcomed by shareholders – and an increase in debt capacity to allow flexibility for future growth.
The new plant will be the third major investment in capacity by Zotefoams in recent years: the Group’s site in Kentucky, USA is benefiting from $42 million investment in infrastructure, extrusion and two high-pressure autoclaves, the first of which has now been commissioned, while in Croydon, UK, work is progressing on a new building to house two low-pressure autoclaves and associated infrastructure, representing an investment of some £12 million.
Zotefoams returned record sales and profits in 2017, with revenue growth of 22% to £70.15m and profit growth before tax and exceptional items of 22%.
Commenting on the latest investment, Group CEO David Stirling says, “With continuing growth in demand anticipated from a variety of market sectors we believe that now is the time to invest in additional capacity to supplement that already coming on stream in our UK and USA factories.”
