Kilfrost Deal Warms New Global Markets

Deicer specialist Kilfrost is warming up for further international growth in the U.S. and China after securing a funding package from its new banking partners, RBS.

The Newcastle-based firm will use the undisclosed sum to further serve the European airline industry in which it holds a 60 percent market share.

Set up in 1932, Kilfrost celebrated its 80th year in business earlier this year and is one of the UK's fastest-growing private businesses.

The 77-year-old family business has been unaffected by the mild British weather as it sells products used to clear airports, aeroplanes and railways into more than 60 countries.

In 2011, 76 percent of Kilfrost sales were made overseas, with significant growth in demand from the Chinese market.

Chief executive Gary Lydiate said: "From our roots in deicing St James' Park football ground in the 1930s, through to the introduction of the Speciality Fluids Division in 2011, we lead the market by looking to the future and investing heavily in research and development.

"We are constantly looking at new and emerging markets where our expertise gives us the market edge and are looking to continue expanding in the U.S and China."

The company has seen its revenues jump by nearly a quarter to £54.95m in the year to the end of September last year from £42m in the 12 months before that.

Lydiate said that trade was particularly strong in the U.S., where he hopes to increase sales from £15m last year to £30m or around a third of the market.

And in China, where more than 120 airports are being built as the economy continues to grow, the company is also making strong inroads into a market which had previously been dominated by native deicer firms.

It is also looking to up its sales in mainland Europe. It has already won new business in Norway and Germany and it is growing into the Benelux countries. Its workforce now includes people from 12 countries.

Kilfrost, which has around 70 staff in the UK and around 15 overseas, including in offices in Miami and Beijing, has recruited more staff in the last 12 months and is continuing to expand its research and development team as it brings out more products.

Kevin Haupert, at RBS Invoice Finance, said: "We are delighted to support Kilfrost with their plans in the U.S. and China.

"They are a long established manufacturer that is committed to investing in the future growth of the business and their success contributes greatly to the local economy.

"By working with our colleagues in the CIB Newcastle team we have been able to provide Kilfrost with a complete team approach and funding agreement which will help them with their international activities."

David Wilkinson, relationship director at RBS CIB, added: "Kilfrost has a strong presence in the North East and a world renowned reputation in its industry.

"It's great news to be working with them again and being in a position to provide the support they need to expand internationally."

Kilfrost's deicing products are made in Haltwhistle and dispatched to the three overseas factories to be mixed into the finished product.