By Gordon Berry

St Andrews ChemTech International has announced the successful conclusion of a management buy-out which will safeguard its future under independent management, and bring the prospect of more jobs.

The high-tech company, which was founded in 1985, primarily carried out process development for the chemical and allied industries, and after starting up in St Andrews it moved to Cupar in 1996.

At that time it expanded into the area of fine organic custom synthesis in modern laboratory and pilot-plant facilities, and it uses technologies including ozonolysis, cryogenics, microwave and high vacuum fractional distillation.

The firm now employs 16 people, of whom five are PhDs, and the MBO team is made up of Norman Walker, Adrian Pepper, John Kerr and Kate Pepper.

It is led by Kate, a 29-year-old research PhD graduate of Exeter University, who has been with the company for four years and will become the managing director and majority shareholder in the new business.

She said that plans for the future are to generate more business, both in the UK as well as abroad, to fill the newly expanded pilot plant.

“With this in mind, we expect, over the next five years, to be able to increase our workforce, thus benefiting the local area”

She said that Scottish Enterprise has been a major contributor in constructing a deal between the previous owners of the company and the MBO team, adding that the deal could not have taken place without the financial support of the Royal Bank of Scotland and of Michelin Development.

The operations director at Scottish Enterprise Fife, Joe Noble, said yesterday that the chemicals sector is a significant contributor to the Scottish economy and a recognised key industry for Fife.

“We are therefore delighted to have supported St Andrews ChemTech through its management buyout and look forward to seeing the company continue to grow,” he said.

“We find that many businesses want to grow or pass on ownership but are not sure of the range of options available.

“As the local economic development agency, we aim to provide expert advice, guidance and support to help local businesses pursue the growth options available to them.”

Mr Noble also said that the law surrounding management buy-outs and associated deals will be changing later this year to help make succession options more accessible to businesses.

“Through a range of activities, such as one-to-one support and high-profile conferences, Scottish Enterprise Fife works with businesses to guide them through the wide range of options such as MBOs and flotation”

Scottish Enterprise Fife will be hosting an event later in the year to help showcase the options and range of support available.

Scotland’s Chemical industry is an important contributor to the Scottish economy, with 14,000 people employed directly and 70,000 indirectly.

It contributes significantly to the country’s GDP and accounts for 8% of Scottish manufacturing turnover.