Small firm that is big on the global stage

Mar 13 2007 By Anastasia Weiner, The Journal

It might only be a small firm, but Hartlepool-based specialist chemical firm Exwold is proof that you don't have to be big to be global. Anastasia Weiner finds out why.

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As I talk to James Robson, business development director and founder of Exwold, he's just weeks away from jetting off to San Francisco. "We've got a stand at one of America's biggest chemical industry exhibitions," he explains.

"It's a chance to showcase ourselves to smaller American firms who are unlikely to come across us otherwise. Equally, it gives us the opportunity to identify potential customers."

It's by no means the last such trip of the year. The company, which employs 85, actively attends as many trade exhibitions as possible, either as delegates checking out a potential new market or exhibitors in an effort to secure new business.

Since its foundation 13 years ago, the Hartlepool-based specialist chemical firm has always had global ambitions. In fact, one of its first contracts was from Monsanto - the US agricultural giant - which it still supplies.

"We're a small firm, but we've always traded overseas," says Mr Robson. "More than half of our customers are international firms."

Exwold's main business is contract chemical formulation and packaging services for the international agrochemical and chemical industry. Customers include Du Pont, Dow Chemical, and Scotts - the company behind Weedol and Pathclear.

Last June signalled a new growth period following the takeover of Surrey-based rival Crack Processing, and simultaneous management buyout (MBO). The deal saw Exwold, which has a £2.5m turnover, take on the expertise and technology of the Woking firm as well as its roster of 75 customers - worth more than £1.5m in sales in 2005. It also marked a new focus on the agrochemical business, and there are plans to build a new plant once sustainable contracts have been identified.

"Hence the San Francisco trip," says Mr Robson. "We want to identify key contracts before we go ahead with the expansion." There could even be the possibility of a joint venture in India, if the domestic market for agrochemicals increased.

"We are constantly being approached by Indian firms as they don't have the specialist technology at present," admits Mr Robson. "The internal market would have to increase significantly, however."

When asked how the company has built up its international portfolio, Exwold's founder is remarkably modest. "Ours is a global industry. English is chemistry's first language, which means you don't encounter translation problems as you might with other sectors.

"However, I can remember having to use a translator when meeting a Japanese client. It taught me the importance of patience, and having the confidence in the translator that they're explaining complex subjects correctly."

But he maintains that the most important aspect of international trading is identifying markets and opportunities.

"Trade exhibitions are essential to identifying potential markets," he says. "Over the years, we've received a lot of help and funding through UK Trade & Investment (UKTI). For example, the San Francisco exhibition. It's costing us £7,000 to send two people to the event, but we have secured £2,800 in funding. Business leaders shouldn't see cost as a barrier to new business, nor time."

Exwold also takes advantage of another vital service offered by UKTI - the Overseas Market Introduction Service (OMIS). OMIS is a paid-for market report that identifies up 40 potential customers, complete with contact details.

Mr Robson recommends that companies considering trading overseas for the first time should look to their European neighbours first. "Generally, English is spoken and for Euro states there is only one currency to think about."

The North-East's airports and ports are another important factor. "Flights from the region's airports mean that you can visit European-based customers in a day," says Mr Robson. "These are important factors to consider."