Yorkshire chemical industry targeted for investment

FAST-growing companies within Yorkshire’s chemicals industry are prime targets for major private equity firms looking to invest, according to one of the region’s experts.

Mark Overfield, head of manufacturing at Deloitte in Yorkshire, said increased boardroom confidence across the country has led to private equity houses looking at high-growth sectors for investment opportunities.

“We are seeing increased interest from investors in the region’s chemical industry and it’s hardly surprising – we’re perfectly positioned to attract investors thanks to our easy land availability, comparatively low cost base and excellent supply chains – not to mention our superb industry support networks.  It’s a real success story for the region,” he said.

Overfield said it has been estimated that over 10% of the UK’s total chemical-related activity is carried out in Yorkshire and he is therefore urging companies which are looking to grow to consider equity funding as a viable option for launching growth as economic conditions show further signs of improvement.

“Equity can replace debt as the key way to secure funding for growth. Despite the arrival of incentives such as the Funding for Lending Scheme, bank lending to SMEs has not increased significantly,” he added.

“I would strongly urge businesses to consider equity funds as a way of securing the robust financial platform needed to achieve sustainable growth.

“There is sometimes an understandable reluctance for entrepreneurs to part with equity in their business but if it is the key to unlocking growth potential then it makes very sound economic sense.”