Ground was first broken on the project in 2017 but it has been hit by cost inflation.
The UK-Dutch chemicals firm Accsys has confirmed the closure of its planned Tricoya construction material factory in Hull. Rising costs and contractor issues have led to this difficult decision.
The construction of the Tricoya production plant at Saltend Chemicals Park in Hull began in 2017. The project aimed to establish a facility for producing an innovative MDF material. However, the endeavour faced numerous setbacks. Rising costs and the loss of the primary contractor delivering the £120 million project significantly impacted progress.
Accsys had anticipated that the Hull plant would be completed by July 2022, but the timeline was repeatedly extended. Although the project was expected to generate 30 jobs, the rising costs and potential profitability concerns ultimately led to its abandonment.
Discontinuing the Hull plant is aimed at de-risking and simplifying Accsys’s business model. The company plans to focus on maximising returns from existing assets, such as its plant in Arnhem and the newly opened facility in Kingsport, Tennessee.
The development of the US facility has overtaken the Hull plans, indicating a strategic shift towards more viable ventures.
Accsys has appointed a financial advisor to assist in finding a financing partner, reflecting its commitment to strategic financial planning.
Investors are closely monitoring Accsys’s future moves, particularly how the company will reinvest the resources previously allocated to the Hull project.
The strategic redirection towards existing and new facilities underpins its confidence in future success.
Accsys’s decision to abandon the Hull plant stems from a need to manage rising costs and de-risk its business. The focus will now shift to existing assets and new ventures, with an emphasis on profitable growth.
While the closure is disappointing, the strategic pivot reflects Accsys’s commitment to sustainable and financially sound operations. Investors and stakeholders alike will be keenly observing the company’s next steps.
