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LUX secures funding for global push

LUX Assure is pressing ahead with plans to take a corrosion detection product to global oil and gas markets after receiving a £3.25 million funding boost.

OUTLOOK: Emma Perfect says the funding will help LUX Assure reach new markets. Picture: Colin Hattersley
OUTLOOK: Emma Perfect says the funding will help LUX Assure reach new markets. Picture: Colin Hattersley

The chemical technology business, based in Edinburgh, has secured backing from a range of investors to .

Archangels and the Scottish Investment Bank have returned with further capital after already providing £800,000 since 2010.

This time around they have been joined by energy industry players ConocoPhillips and Statoil Technology Invest.

The funding will allow LUX Assure to recruit business development, logistics and sales professionals with staff numbers expected to double to 12 before the end of this year.

The company – which has turnover of £150,000 – is planning to rapidly expand the sales of corrosion monitoring product CoMic.

That works by detecting groupings of molecules called micelles, allowing companies to calculate what size of dose of corrosion-inhibitor chemicals they need to apply to infrastructure such as pipelines.

Corrosion-inhibitor testing is done regularly, meaning if CoMic can secure a place in an oil and gas firm's supply chain it should lead to repeat business.

Emma Perfect, LUX Assure's managing director, said there was interest in the product from the Middle East, Australia and North America.

She said: "The investment means we can [take on] sales, business development and senior managers that have grown service companies."

While LUX maintains a pipeline of other products, its focus is now shifting away from development and towards taking CoMic to the energy industry.

It will continue to sell its OMMICA system – which helps prevent the build up of methane hydrates in pipelines – although that is seen as a more niche offering.

Ms Perfect added: "The products have been well received with a mix of large operators and service companies particularly in upstream production.

"CoMic should save money in the short term through better management of the chemicals but also in the long term through better management of the systems."

Andy Laing, investment executive at Archangels, said: "This level of investment, coupled with the skills and experience across the shareholder base, substantially increases the likelihood of commercial success for LUX and strong returns for investors."

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