Magma Global Limited, a Portsmouth, UK-based manufacturer of high performance carbon fibre pipe for the oil and gas sector, received an equity investment of undisclosed amount.
Backers included Business Growth Fund, which invested £8.76m, as well as existing shareholders Kern Energy Partners (a Canadian energy investor), and NES, (a Danish venture capital firm).
The investment will support Magma in building a manufacturing facility with deepwater access in Southampton capable of producing up to 250km of pipe per year.
Founded in 2009 by Martin Jones (CEO), Damon Roberts (CTO) and Mike Boyd (CFO), joined by Charles Tavner IP Director, and Commercial Director Steve Hatton, Magma designs and manufactures a range of high performance carbon fibre pipe for subsea oil and gas applications (m-pipe®).
The company intends to use the capital to install a high-tech manufacturing facility on a brownfield site in Southampton, which will have the capacity to produce up to 250km of pipe, and to manufacture pipes up to 4km long which can be stored on a spool and taken away by installation vessels from the deep water quay. This will allow Magma to export pipe to international markets, and provide a platform for further international expansion.
Magma currently employs 90 people, and the new plant should create an additional 100 jobs.
In conjunction with the funding, BGF investment director Mike Sibson will join the board of the company.