Toughglass has announced that it is investing almost £9 million in a new 65,000 square foot factory close to its existing plant in Kilkeel, Co Down. The investment, which is being supported by the IDB, is being led by the venture capital company Hambro Northern Ireland Ventures, which is providing £1 million of equity funding in syndication with Enterprise Equity (NI), supported by £5 million of debt facilities from the Northern Bank and Lombard & Ulster.
Toughglass employs around 100 people in the manufacture of toughened glass for customers throughout the UK and Ireland. The new factory will enable the company to produce curved safety glass for the bus and coach industry, as well as for shower enclosures and refrigerated display cabinets.
It will go into production in September 1998, and is expected to result in the creation of 50 new jobs over the following two years.
Toughglass managing director Mr John Agnew said the money was being spent on a new £2.5 million furnace currently being built in the United States, which will be delivered towards the middle of next year.
A further £1.5 million is being spent on pre-processing machinery from Switzerland and Italy. The remainder of the investment is on the new factory, commercial vehicles, and ancillary equipment.
"Most of our output at present is for the construction industry," Mr Agnew said. "But this is becoming increasingly price-driven, and we were concerned to expand into addedvalue products. The manufacture of curved safety glass will give us the opportunity to do that."
Toughglass, which was set up in 1989, has a turnover of around £5 million, but Mr Agnew said the investment will allow the company to generate up to £20 million in additional turnover. The company's main shareholder is local businessman Mr Gordon Coulter, who has interests in the construction and property business.
"The entrepreneurial drive of the Toughglass team made this a compelling investment for us," said Hambro's managing director, Mr Colin Walsh. "We were also please to be able to syndicate the deal with Enterprise Equity," he said.
Hambro Northern Ireland Ventures manages a £14 million venture capital fund supporting the manufacturing sector. Investors in the fund include the EU, as well as pension funds from Britain, the US, and Europe. Toughglass is the fund's fifth investment. Enterprise Equity is the venture capital arm of the International Fund for Ireland. It was set up 10 years ago and has invested almost £8 million in 24 companies, including BCO Technologies and Sherman Cooper, manufacturer of the Ben Sherman range of men's shirts.
Its chief executive, Mr Bob McGowan-Smyth, said the management of Toughglass had shown considerable vision in embarking on the expansion programme. Mr Hal Wilson, of Enterprise Equity, and Mr Frank Flynn, of Hambros, will join the board of the company.
