A key government grant body could next week add its weight to a £10m investment plan by Mentholatum, the company behind the Deep Heat muscular sprays and creams, in its East Kilbride plant.
A key government grant body could next week add its weight to a £10m investment plan by Mentholatum, the company behind the Deep Heat muscular sprays and creams, in its East Kilbride plant.
The company, which is owned by Japanese giant Rohto, wants to expand its facility with the aim of tripling production of its range, which also includes Stop'n Grow nail care and Softlips lip products, as well as Rohto Zi moisturisers.
The expansion, which will take place over two years, could see the workforce boosted from 85 to 100, with capacity for another 25 people, and the creation of a research and development (R&D) facility to devise products.
The company has applied for regional selective assistance, which is used to encourage companies to invest in poorer areas. The Scottish Government's portion is overseen by the Scottish Industrial Development Board, which will meet on December 13 to decide whether to back the project and set conditions for its cash.
How much of the £10m is likely to come from the government-backed body has not been confirmed although grants are typically for less than half the investment and are drawn down over time as targets for investment and job creation are met.
Mentholatum managing director Andrew Tasker said the government money was an "essential part" of the company's plans.
Tasker, who used to work for pharmaceutical giant Pfizer, joined the East Kilbride, Lanarkshire, operation in the summer after being tasked with assessing whether it was a suitable site for the company's expansion and then spearheading the drive. Currently, around 70% of its products, of which Deep Heat and Deep Freeze are the dominant brands, are sold in the UK, with the rest distributed across Europe, Africa and the Middle East. Tasker is to execute a major push into emerging European markets such as Russia, so that in a few years exports account for 65% of sales.
"The initial, tentative plan is the workforce heading to 100. That will increase as long as we are successful," he said.
Around five staff are likely to be brought into a beefed up research and development unit, Tasker added.
"What we want to do is set up an R&D sector here in Scotland really both in terms of taking some of the technologies (from elsewhere in the company) and developing them for Europe and developing new technologies for launch here in the UK and European markets."
Mentholatum has had a plant in East Kilbride for 12 years. This latest investment could help neighbouring companies. Roadferry deals with warehousing and could benefit from any expansion, while Smurfit assists with shipping. Thermal Transfer will undertake project management for the building if approved.
