Bird flu cleaners in Malaysian talks

Sep 21 2006 By Nigel Stirling, The Journal

A water treatment company helping to tackle bird flu in Asia is poised for a fivefold increase in turnover on the back of a new £150,000 chemical plant.

HydroChem Group, which supplies water treatment chemicals and technical advice to clients, will use the new plant to make chemicals for its growing customer base in both the UK and in Asian countries.

The Hartlepool company, which generates sales of £500,000 and employs nine staff, is in talks with a Malaysian conglomerate to supply chemicals for the disinfectant of water supplies for poultry farms in South-East Asia.

Company secretary George Dalby, who set up Hydrochem Group in 1987 with managing director Bill Abbott, said: "We are in the final stages of negotiating a joint venture with a Malaysian company to initially supply the Asian countries from the UK but eventually supplying chemicals from Malaysia."

The company, which includes HM Prisons, the Ministry of Defence and NHS hospital trusts as UK clients, adapted chemicals used in the treatment of potable drinking water to use in the new chemical.

Mr Dalby said: "A silver peroxide-based disinfectant is added to the water supplies during the breeding period. We have concluded a successful trials on the chemicals and we would hope to be in a position to start supplying those markets in 2007."

Reluctant to put a figure on the size of the potential market in Asia for the product, Mr Dalby said the company was hopeful of a five-fold increase in the company's turnover within the next five years.

"The dual purpose of the new plant is to build the market for export as well as building the market and stockpile product for customers in the UK. Currently around 30% of our business is from the supply of blended water treatment chemicals. In the next five years we would hope to double that."

Hydrochem Group has also recorded "significant" interest from local authorities, leisure clubs and prisons since the recent launch of its HSE Approved Code of Practice-compliant risk assessment systems for the detection of legionella in water supplies, Mr Dalby said.

Paul Tkaczyk, from Business Link, which advised Hydrochem on its strategic planning, said: "These are exciting times and I'm delighted to be providing support to Hydrochem."