Chemicals firm Accsys has confirmed its decision to terminate plans for a construction material factory in Hull. This decision follows nearly two years of inactivity at the site due to escalating costs and the loss of the primary contractor.
Originally intended to produce next-generation MDF material via its subsidiary, Tricoya UK, the £120 million project faced continuous delays and cost overruns. The facility, which promised the creation of 30 jobs, has now been deemed unfeasible for future profitability.
Following a comprehensive review initiated in November last year, Accsys announced that it would incur a significant non-cash cost of €20 million and an exceptional cash cost of approximately €4.5 million in its first half of 2025 financial results. Dr Jelena Arsic van Os, CEO of Accsys Technologies PLC, noted, “Whilst this is a difficult decision, the board is confident that this is the right course of action for the company and its shareholders. Discontinuing the Hull plant further derisks and simplifies our business and enables us to fully focus on maximising returns from our existing assets. Today’s actions, alongside our expansion in Arnhem and newly opened Kingsport facility, underpin our confidence in delivering profitable growth as we progress towards our target of 100,000m³ production by the end of FY27.”
Despite the setbacks in Hull, Accsys reported a 3% increase in first-quarter revenues to €35.9 million (£30.2 million), demonstrating resilience amidst global economic challenges. The development of the company’s joint venture project in Kingsport, Tennessee, has outpaced the Hull plans. The Kingsport facility, commissioned earlier this year, manufactures Accoya, a treated wood product lauded for its enhanced durability, stability, and versatility compared to conventional timber products.
Furthermore, Accsys confirmed it would retain the intellectual property rights for Tricoya and continue production from its Arnhem facility in the Netherlands. The decision reflects the firm’s strategic pivot towards optimising existing assets for sustained profitable growth.
The discontinuation of the Hull Tricoya factory underscores Accsys’s strategic shift to streamline operations and prioritise existing assets, reinforcing its commitment to long-term profitability and growth ambitions.