Graft Polymer (UK) PLC (LSE:GPL) said its production facility in Slovenia has reached a key milestone by becoming cash flow positive – though the plan is to double output once a number of important pieces of equipment have been delivered.
In an update to investors, the company said it was preparing in the coming weeks to take delivery of a microwave dryer tunnel, custom-made kit to make nano-emulsions and an ozone-plasma polymer modification module.
The investment is in line with plans set out at the start of the year when the company listed on the London Stock Exchange’s main market.
"Delivery logistics and equipment lead times have been challenging for companies globally, sometimes causing delays to the overall delivery of a company's strategy,” said Graft chief executive Victor Bolduev.
“We are very pleased that our suppliers have confirmed the delivery of this major equipment across both our Polymers and Bio divisions, enabling us to accelerate our research into these innovative and potentially sector-changing products.
“With the achievement of reaching cash flow positive at our Slovenia facility through organic growth alone, the continuous operational developments being made put Graft Polymer in a good position as we deliver on our strategy."
The company is a specialist in combining incompatible compounds via the processes of grafting (hence the name of the company), alloying, cross-linking and synthesis.
The methods employed are based on the work of Graft’s founder Bolduev.
Its technologies allow it to create some of the most sophisticated polymer modifiers known to the industry that are of consistent quality and high purity.
Bolduev and his team have developed at least eight different ‘standard products’ such as coupling agents, impact modifiers and adhesives.
They also sell four ‘innovative’ ranges that tackle issues such as abrasion and temperature resistance and have come up with smart polymers that are self-hardening or self-healing or have shape memory.
In a move that could really tilt the needle, in 2020 the company launched a new division called GraftBio.
It was formed to develop nano-coating delivery systems for food supplements and drugs that can control how much of an active ingredient is absorbed into the blood, when and how.