An entrepreneur who wanted to bring more manufacturing back to the UK now runs a successful chemicals company in Arbroath.
Stakam, which has 10 staff, describes itself as the world’s first craft chemical and polymer company.
Managing director Alistair Watson would like to see a big increase in staff numbers in the years ahead as the enterprise expands.
Alistair studied chemistry at Glasgow University, and then had several different jobs before he founded Stakam.
He said: “I wanted to have more control over my destiny, and to try and apply the learnings from the other organisations I had worked for.
“Plus, I never liked seeing all the manufacturing business move out of the UK – and I wondered if we could bring some of that back and then pass on savings to the customer or give them a really-responsive service.
“The catalyst was picking up a technical consulting contract for one of the largest UK chemical companies and then decided to do it through a company rather than as an individual – that got Stakam started.”
Developing a global customer base
One of Stakam’s most popular products is runway de-icer for the RAF, with others being specialist oilfield chemicals and polymers for paint of coatings industries.
Alistair said: “This offering is all about our production throughput.
“We developed our own unique continuous process which means we can produce more volume per factory area than any of our competitors.
“This responsiveness allows us to accommodate the demand caused by weather while having less money tied up in fixed assets and stock.”
He adds Stakam now has more than a dozen regular customers in various global markets.
Typically, clients are large organisations working in oilfield, industrial, water treatment, construction and plant nutrition.
Earlier this year, Stakam announced a “significant” six-figure investment by Saudi Multichem, an independent oilfield chemicals manufacturing company in Saudi Arabia.
The investment and subsequent partnership will result in an increase in jobs and the potential for multi-million-pound revenue growth for Stakam.
Alistair said: “We are confident that the partnership will be the first of many international ventures for Stakam.”
Impact of Covid-19 on Arbroath firm
He said the Covid pandemic had a variety of effects on his firm – both positive and negative.
Firstly, it pushed Stakam to manufacture emulsion polymers.
“We are the only company in Scotland that can produce emulsion polymers – and only one of two in the UK. Without the pandemic, we would not play in that market.
“Prior to Covid we were manufacturing more simple solution polymers.”
The businessman also said the increase in shipping costs during Covid meant, on certain products, Stakam could compete on price with Chinese companies.
“That was the first time I had experienced this in my working life.”
But Alistair said the negative aspect of the pandemic meant the company strayed out of its mainstay business.
“We went down a few rabbit holes – for example producing hand gel. We exited this business six months ago to focus our efforts on core and strategic elements.”
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Alastair said it is important to have the right equipment and being flexible is important to the success of the business.
He also praised the hard work of the Stakam workforce.
“A workforce with good attitudes, skill sets and ability to develop are so important.,” he said.
“More creative technology agreements that allow us to compete with the giants.
“The right-installed equipment to win work today not tomorrow.
“Also, being far more nimble and responsive in commercial decision-making and chemical supply than our competitors.”
Conversation