Zotefoams invests for future growth

Announces £23 million initial investment in third foam manufacturing site with a major capacity investment to meet continuing demand for its range of unique, high quality foam products

Zotefoams plc, the Croydon, UK-headquartered manufacturer of cellular materials, has announced an investment plan supported by its shareholders. 

Headlining the plan is a £23 million initial investment in a third foam manufacturing production site in central Europe, scheduled to come on stream in 2020 and increasing capacity for the Group’s range of polyolefin foams by some 20%. The new site will also incorporate significant inventory and fabrication capacity, as well as a production hub for the T-FIT® range of technical insulation products.

The initial investment includes infrastructure to double capacity when needed, along with land for further investment.

Funding for the investment plan has been secured via a £20m increase in share capital – which has been welcomed by shareholders – and an increase in debt capacity to allow flexibility for future growth.

The new plant will be the third major investment in capacity by Zotefoams in recent years: the Group’s site in Kentucky, USA is benefiting from $42 million investment in infrastructure, extrusion and two high-pressure autoclaves, the first of which has now been commissioned, while in Croydon, UK, work is progressing on a new building to house two low-pressure autoclaves and associated infrastructure, representing an investment of some £12 million.

Zotefoams returned record sales and profits in 2017, with revenue growth of 22% to £70.15m and profit growth before tax and exceptional items of 22%.

Commenting on the latest investment, Group CEO David Stirling says, “With continuing growth in demand anticipated from a variety of market sectors we believe that now is the

time to invest in additional capacity to supplement that already coming on stream in our UK and USA factories.”

ZF Kentucky US new facility.jpg:

Zotefoams’ site in Kentucky, USA is benefiting from $42 million investment in infrastructure, extrusion and two high-pressure autoclaves

ZF UK facility expansion

At Zotefoams’ Croydon, UK site, work is progressing on a new building to house two low-pressure autoclaves and associated infrastructure, representing an investment of some £12 million

About Zotefoams:

Zotefoams plc (LSE – ZTF) is a world leader in cellular materials technology. Utilising a variety of unique manufacturing processes, including environmentally friendly nitrogen expansion for lightweight AZOTE® polyolefin and ZOTEK® high-performance foams, Zotefoams sells to diverse markets worldwide. Zotefoams uses its own cellular materials to manufacture T-FIT® advanced insulation for demanding industrial markets. In addition, Zotefoams owns and licenses patented MuCell® microcellular foam technology, developed specifically for extrusion applications, from a base in Massachusetts, USA to customers worldwide.

Zotefoams is headquartered in Croydon, UK, with additional manufacturing sites in Kentucky and Oklahoma, USA (foam products manufacture and conversion), Massachusetts, USA (MuCell Extrusion) and Jiangsu Province, China (T-FIT®).  A third foam manufacturing site in central Europe is planned to begin manufacturing in 2020.

Zotefoams plc is a pioneer in cellular materials with a legacy of innovation that stretches back to 1921. In 2017 Zotefoams (LON:ZTF) returned record sales and profits, with revenue growth of 22% to £70.15m and profit growth before tax and exceptional items of 22%. The Group employs over 400 staff around the world.

For more information please contact:

Rosemary Alton, Group Marketing Manger

+44 (0)20 8664 1600 [email protected]