£600,000 funding helps Magma to open facility in Vietnam

Magma Ceramics and Catalysts in Dewsbury has been given £600,000 of funding from HSBC to help it expand with a 6,000 sq m facility between Hanoi and the main international seaport in northern Vietnam, Haiphong.

The finance was secured with the help of HSBC’s Calderdale, Kirklees and Wakefield commercial team, led by senior international commercial manager David Sharp.

Magma’s 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.”

The move has been backed by Mrs Truong Tu Phuong, the chairman of the Dai An industrial zone where the new factory is based. It will be up and running in July and will provide a platform for further growth in south-east Asia.

Magma’s turnover is expected to be £10m this year, up from £6m in 2012 and £1.6m in its first year of operation, just three years ago. The company believes the Vietnam facility will be contributing up to £5m to turnover within two years of operation.

Magma was formed in February 2010 following a management buyout of a former Dyson Group business, Dyson Precision Ceramics.

The company employs 52 people at its Dewsbury headquarters and recently set up a plant in Brazil to focus on the manufacture of a range of catalyst products for customers in the petrochemical and natural gas markets.

The new factory in Vietnam adds to its ability to supply around the world, with 80 per cent of its products entering the export market.

Jason Gledhill, HSBC’s Calderdale, Kirklees and Wakefield area commercial director, said: “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.”