HSBC supports Magma’s Vietnam expansion
Magma has secured a £600,000 finance package from HSBC to support the development of a new manufacturing facility in Vietnam.
The company has acquired a 6000m2 facility between Hanoi and North Vietnam’s main international sea port, Haiphong. Magma has chosen the premier of Vietnamese industrial estates, The Dai An Industrial Zone, as the base of its operations. The Industrial Zone and its Chairwoman, Mrs Truong Tu Phuong, have been enormously supportive in Magma’s establishment to date. The facility will be operational in July and the company will use it to manufacture refractory ceramic products that will be used by the glass, alloy and steel industries.
The company also plans to use the facility as a platform for growth in the South East Asia market, whilst it is also strategically located to take advantage of Vietnam’s burgeoning petro-chemical industry.
The company has secured the finance from HSBC’s Calderdale, Kirklees and Wakefield Commercial team in a deal led, on behalf of the bank, by Senior International Commercial Manager, David Sharp. In addition to finance relating to the company’s expansion, HSBC also provides banking services in Brazil and Vietnam for the business.
Magma Ceramics and Catalysts was formed in February 2010 following a management buy-out of the former Dyson Group Business, Dyson Precision Ceramics. It has grown from a turnover of £1.6 million in its first year of operation to £6 million last year and is on course to deliver £10 million in 2013. The company believes the Vietnam facility will be contributing up to £5 million to turnover within two years of operation.
The company employs 52 people at its Dewsbury headquarters and recently established a plant in Brazil to focus on the manufacture of a range of catalyst products for customers operating in the petrochemical and natural gas markets. Magma Ceramics & Catalysts is now a supplier of a wide range of refractory, ceramic and catalyst materials throughout the world, with 80% of its production entering the export market.
Managing Director Mark Stuckey said: “This facility is a strong strategic acquisition for us because it enables us to manufacture ceramic products at volume, strengthens sales opportunities with South East Asia and is in a good location to support Vietnam’s growing petro-chemical industry. HSBC’s support has been important to the success of the project and I’d like to thank Dave and the team for their work.”
Jason Gledhill, HSBC’s Calderdale, Kirklees and Wakefield Area Commercial Director, added: “This is Magma’s second international manufacturing facility and demonstrates the innovative and proactive nature of the company. They are taking their business to where their customers want them to be and it is exactly the type of business HSBC is keen to support.”