01 August 06

Hi-Tech Metals Company Gets £2.75m Investment

Yorkshire Forward is investing £2.75 million in Metalysis, a metals extraction company based near Rotherham, to commercialise its state-of-the-art metal production technology, set up a manufacturing plant and create more than 130 highly skilled jobs.

Metalysis, based in Wath-upon-Dearne near Rotherham, has secured the investment for the further research and development necessary to scale up its process to produce commercially viable volumes of metal.

A successful outcome will allow Metalysis to create a manufacturing business producing non-ferrous metals using a revolutionary and environmentally friendly patented process.

Metalysis holds the exclusive global exploitation rights for the FFC Cambridge process, a novel electrochemical technique discovered by Professor Derek Fray and co-workers in the materials department at Cambridge University.

Patented globally in 1998, the FFC Cambridge process uses a molten salt with a current passing through it to turn metal oxide into pure metal ‘sponge’, which can then be processed as it is, or ground into a powder.

This process makes metal extraction easier and dramatically cuts the cost of metal production - normally difficult and expensive to produce using conventional methods. This is because the metal remains in a solid state so no melting takes place and powder is produced directly from its oxide. The FFC Cambridge process is also environmentally friendly as it only produces small levels of CO2 and uses calcium chloride - which has the toxicity of table salt and can be recycled for repeated use.

The FFC Cambridge process has a very broad application and can produce a wide range of metals and alloys for use in the aerospace, electronic and medical sectors. Once the process is proven on an industrial scale, Metalysis wants to establish a manufacturing facility in South Yorkshire to produce high value alloys. The company expects to employ 137 people in highly skilled jobs by 2010 at is manufacturing plant.

Dr Graham Cooley, Chief Executive of Metalysis, said: “We are delighted that Yorkshire Forward is supporting this exciting technology. With this investment we aim to complete the process of taking a Cambridge University invention through from core research and proof of commercial principle into commercial production. This support will help us establish the infrastructure necessary to start production in South Yorkshire - production that might otherwise have gone overseas.”

Alex McWhirter, Head of Enterprise at Yorkshire Forward, said: “Metalysis is an excellent example of a company in our region exploiting world class technology on an international platform. They have already secured exclusive global rights to the technology and are now gearing themselves up to become a major player in the metals sector. We are very pleased to be playing our part in securing Metalysis’ future in South Yorkshire. The development will create many highly skilled jobs and will put Yorkshire and Humber at the forefront of the advanced manufacturing and metals industry.”

Yorkshire Forward made the investment with a split of funding stemming from a European Union Inward Investment grant (£1.25 million) to support the R&D element, and Selective Finance for Investment in England (SFIE) scheme (£1.5 million) to set up the manufacturing plant.

SFIE is managed locally by Yorkshire Forward on behalf of the Department of Trade and Industry. SFIE is available to assist with capital investment projects, which achieve business growth, improve competitiveness and productivity, create new skilled jobs and encourage innovation.

The European Union Inward Investment grant is contracted with Objective 1 funding to attract inward investments, and in particular companies that are technology rich.