The loss of the lead contractor and Covid-related delays have seen the cost of the build out of a huge new Hull processing plant soar.
A further £7.7 million to £12.8 million is to be added to the investment in the Tricoya construction materials site at Saltend.
This summer saw Grimsby-headquartered Engie Fabricom walk away from the huge contract, claiming a “force majeure”. The struggling engineering firm had to be bailed out by its parent company after posting huge losses in the last year.
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Accsys, the Dutch business leading the joint venture project, has now pledged a further £14.5 million to get it over the line, taking on the engineering, procurement and construction project itself.
But the capital investment is now estimated at between £77 million and £82 million.
In a statement to the City, a spokesperson said: “We have agreed funding arrangements with our Tricoya 海角视频 consortium partners relating to the anticipated costs to complete the plant.
“Under the arrangements Accsys has entered into a new loan agreement with Tricoya 海角视频 under which Accsys will lend up to €17 million (£14.5m) to T海角视频 to be used towards the Hull plant construction project alongside existing funding in place for T海角视频.
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“The new funding and commercial arrangements enable the project to continue.”
The short term fund will be repayable in September 2023.
August had seen the increase first highlighted, with the additional costs explained as “largely due to the extended project duration, including the engineering changes, delays due to Covid-19, and time and recovery actions resulting from past management of and demobilisation from the site”.
“The costs also reflect the settlement agreement with Engie Fabricom,” a spokesperson said.
The plant features a 185ft acetylation tower, lifted into position a year ago, when an early 2021 commissioning was eyed.
It is anticipated to complete in July next year, though work to accelerate that milestone is being conducted. A total of 30 jobs will be created when operational.
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Accsys said third-party expertise and support will be brought in as and when required to complete works safely and quickly.
Tricoya is a material that combines timber with advanced chemistry to improve strength and widen use, described as the first major innovation in the wood composites industry in more than 30 years.
The company said demand remains strong, with an initial plant in Arnhem also being expanded.
“We continue to expect that, once operational, the plant's production will ramp-up to full capacity over approximately three years,” a spokesperson added.
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