A KIRKLEES company has secured six-figure funding to support the development of a new factory in Vietnam.

Dewsbury-based Magma Ceramics and Catalysts has completed the funding deal from HSBC for £600,000 to help develop a 6,000sq metres facility between Hanoi and north Vietnam’s main international sea port, Haiphong.

Magma has chosen the premier of Vietnamese industrial estates, the Dai An industrial zone, as the base of its operations and has worked with the industrial zone and its chairwoman, Truong Tu Phuong, to set up the plant.

The factory will be operational in July and the company will use it to make refractory ceramic products that will be used by the glass, alloy and steel industries.

Magma also plans to use the facility as a platform for growth in the South East Asia market as well as taking advantage of Vietnam’s burgeoning petro-chemical industry.

The company has secured the finance from HSBC’s Calderdale, Kirklees and Wakefield commercial team. The deal was led on behalf of the bank by senior international commercial manager David Sharp.

In addition to finance relating to the company’s expansion, HSBC also provides banking services in Brazil and Vietnam for the business.

Magma Ceramics and Catalysts was formed in February, 2010, following a management buy-out of the former Dyson Group business, Dyson Precision Ceramics.

It has grown from a turnover of £1.6m in its first year of operation to £6m last year and is on course to deliver £10m in 2013.

The company believes the Vietnam facility will be contributing up to £5m to turnover within two years of operation.

Magma employs 52 people at its Earlsheaton headquarters and recently established a plant in Brazil to focus on the manufacture of a range of catalyst products for customers operating in the petrochemical and natural gas markets.

Magma Ceramics & Catalysts now supplies a wide range of refractory, ceramic and catalyst materials throughout the world – with 80% of its production entering the export market.

Managing director Mark Stuckey said: “This facility is a strong strategic acquisition for us because it enables us to manufacture ceramic products at volume, strengthens sales opportunities with South East Asia and is in a good location to support Vietnam’s growing petro-chemical industry.

“HSBC’s support has been important to the success of the project and I’d like to thank Dave and the team for their work.”

Jason Gledhill, HSBC’s Calderdale, Kirklees and Wakefield area commercial director, who is based in Huddersfield, said: “This is Magma’s second international manufacturing facility and demonstrates the innovative and proactive nature of the company.

“They are taking their business to where their customers want them to be and it is exactly the type of business HSBC is keen to support.”