A TEESSIDE chemical company plans to invest £1m over the next year.

Exwold Technology operates from three sites in Hartlepool and Billingham and is investing in new roll compaction technology and a new stock control system.

It has secured a £250,000 investment from UK Steel Enterprise (UKSE) and expects to double sales over the next two to three years, taking the £5m turnover to £10m but quadrupling its profitability.

Exwold was established in 2002 and began processing chemicals into granular form for the agricultural sector, providing many benefits such as safer, cleaner handling, improved shelf life and flow properties.

It has since moved into other sectors including flame retardants, surface coatings, biocides and metal treatments.

The company, which has a workforce of 60, merged with a Londonbased company in 2006, extending its range of processing methods, and now processes more than 100 chemical products.

Its continuing technological advances attracts new customers from all over Europe with multi-national companies such as DowAgro- Sciences, Chemtura, ISK, Novartis and BASF making up about half its 50-strong client base.

Founder James Robson, business development and finance director, said they doubled their profits in 2009 and are still growing.

He said: “We now have a high level of expertise in a niche speciality market with 70pc of our revenues generated abroad. We believe that SMEs like Exwold are key to the North-East’s future as a manufacturing base.”

A restructuring saw Kevin Martin become managing director this month and Exwold is currently recruiting new executive commercial and manufacturing directors.

Mr Robson said: “We started in the last recession and are now working our way successfully through this one.

“We are looking to stay ahead of the competition by moving into countries such as Brazil – the biggest agrochemical market in the world, with no-one providing the specialist services that we offer.

“This investment from UK Steel Enterprise is very important to us not only financially but also because it demonstrates a real confidence in the company at a time when it is difficult to raise finance.

“It is fair to say that our bank has been more supportive because of UKSE’s involvement.”

Simon Hamilton, regional manager of Corus-subsidiary UKSE, said they first backed Exwold with a small unsecured loan when the company first started.

He said: “We are now very happy to make this investment of £250,000.

Our bottom line is about regeneration in steel areas, not purely profit, so we can often be more flexible than other funders.

“Exwold has a strong and experienced management team and we foresee even more exciting times ahead for the company.”

Details of UKSE’s support for business is available from 01642-777777 and at uksteelenterprise.co.uk.