Plastics Pioneers Hail Support As Difference Between Survival And Collapse On Road To Growth

A Darlington-based plastics pioneer has hailed the support it has received as the difference between survival and collapse on its journey towards growth.

Sustainable plastics firm Chestnut Biopolymers Ltd saw its fortunes soar after securing grant support to purchase vital specialist equipment at a discounted price.

This ultimately resulted in a £400,000 equipment saving – and allowed it to launch its own research and development facility.

Chestnut Biopolymers manufactures plant-based biodegradable plastics for injection moulding, blow moulding, sheet extrusion and thermoforming.

It was initially supported through the Tees Valley Launchpad Pilot, delivered by the Combined Authority, helping the business establish its own Research & Development facility and prepare for a major investment round.

Finance Director Lisa McGeary said grant backing of £50,000, through the Combined Authority’s Skills Capital Funding, was critical at a pivotal moment.

“Without the support of TVCA we would have folded the business,” she said. “The research and equipment required to get such an innovative business up and running is considerable.

“The financial support enabled us to purchase around £500,000 worth of equipment for approximately £100,000 – a saving of £400,000. That has been transformational.”

Since engaging with the Combined Authority, the firm has now invested in its own premises and recruited three additional members of staff in Darlington.

Its Darlington facility has also enabled its team to develop biopolymer formulations that are now seeing at-scale production in injection moulding, blow moulding, sheet and corrugated sheet extrusion, thermo-forming and printing.

Since securing support from Combined Authority, the company has secured customers in agriculture, horticulture, fashion, cosmetics, electrical and medical markets.

And the firm is now focused on scaling up through 2026, with revenue growth at the forefront of its strategy.

The firm, based at Cleveland Industrial Estate, in Darlington, has also reaped the rewards of the Forge Accelerator Programme.

Owner and CEO Mike Hale took part in the Forge, at Tees Valley Labs, last year to help the business scale-up sustainably and establish more local connections.

Mr Hale, who has more than 30 years’ experience in the industry, explained he wanted the firm to remain a formulator and the wider bio-industry to grow.

And he also highlighted how the Combined Authority’s programmes had made a big difference.

On the Forge, Mike said: “A lot of it was a refresher for me, but it also helped me understand what it means to work with a scale-up. I’d worked with a company with 2,000 people – so it’s going from a company with that many people to four.

“But it was also getting the insight from other people on The Forge programme who were going through very similar experiences. We could share and learn from each other.

“I’ve spent the last 35 years outside the UK, so the Forge programme helped in embedding me in this environment.”

The firm’s plans for the future include expanding material performance for large-scale biopolymer processing, launching commercial products through manufacturing partners in sectors including agriculture, forestry, fashion, electrical packaging and cosmetics, and undertaking production trials in medical, media and construction markets.

Tees Valley Mayor Ben Houchen said: “Chestnut Biopolymers is exactly the kind of innovative, forward-thinking business we want to see starting up and scaling up here in Teesside, Darlington and Hartlepool.

“By backing ambitious companies with the right financial and practical support, we’re not only protecting jobs but creating new, high-skilled opportunities in cutting-edge sectors like sustainable materials.

“It’s fantastic to see this Darlington firm not just survive, but grow, recruit locally and prepare to take more of its products to market.”

Cllr Alec Brown, TVCA Cabinet Member for Net Zero and Business Growth and Leader of Redcar and Cleveland Borough Council, added: “Access to the right support at the right time can be the difference between success and failure for early-stage, high-innovation businesses.

“It’s great to see multiple packages of our wider business support programmes helping companies overcome barriers around finance, skills and infrastructure so they can focus on growth.

“Chestnut Biopolymers is a powerful example of how targeted intervention can make the difference a firm sorely needs.”

Reflecting on her experience, Ms McGeary urged other entrepreneurs to seek support:

“When you start a business, you need all the support you can get – and TVCA offers real support, not just words.

“Be brutally honest about the skills you have as a team and whether they match the stage of your business. Once you understand that, recruit to fill the gaps.”

The Forge programme, delivered via Tees Valley Labs, is funded by the UK Government through the UK Shared Prosperity Fund.

Launchpad has now closed, but businesses across the Tees Valley looking to start, scale or innovate can find out more about available support through the Tees Valley Combined Authority website here.