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Product category: Manufacturing orders, contracts, financial reports
News Release from: Keronite
Edited by the Manufacturingtalk Editorial Team on 23 August 2006

Surface engineering underwrites its
future

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High technology, plasma electrolytic oxidation surface engineering company, Keronite, has completed a GBP 10.2 million private placing, which will provide a platform for long-term business plans.

Keronite, the Cambridge UK-based high technology surface engineering company, has announced the completion of a GBP 10.2 million private placing Keronite, a world leading plasma electrolytic oxidation (PEO) company, has been developing its technology successfully since 2000

The surface characteristics of aluminium and magnesium can be enhanced through the chrome-free Keronite process, enabling the replacement of heavier materials such as steel and impacting favourably on design, fuel efficiency, emissions and recyclability.

Under the leadership of CEO, Lars Olrik, a highly skilled executive team has begun to sell production volumes of this technology to a wide-ranging portfolio of OEMs, tier 1 suppliers, diecasters, extruders and engineering applications businesses.

International blue chip customers in automotive, defence, aeronautics, oil, semi-conductor manufacture, consumer goods such as mobile phones, toolmaking, optical products and architectural panels bear witness to the exciting growth potential of this advanced technology.

The successful GBP 10.2 million placing, masterminded by KBC Peel Hunt, will secure both the short-term financial position and provide a platform for the company's medium and longer-term business plans.

Leading investors including Hotbed business angels, RAB Capital, Bank of Scotland Growth Equity, Quester, Fidelity and New Star have provided the bulk of the funds.

This has allowed the company to restructure its shareholder register, repay shareholder loans and bridging finance and generate GBP 4.7 million to fund working capital and capital expenditure requirements.

Chairman Nick Kuenssberg said: "This has proved a lengthy but eminently worthwhile process which provides a solid basis for Keronite's future.

I am confident that the new investors' faith in the company will be repaid as its unique enabling technology becomes increasingly understood and appreciated.".

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