Cookstown firm buys Derry oil terminal in multi-million deal
Cookstown company LCC Group is now the sole-owner of a state-of-the-art oil terminal in Maydown, Co Derry, after buying out its Norwegian partners.
The energy provider said the transaction, which was supported by Danske Bank, was an investment in future growth which allowed them to acquire a strategically important terminal from Norway's Statoil ASA.
The two companies came together for a joint venture called LSS Ltd to build the oil terminal in Maydown, Co Londonderry in 2005.
Now its sole owner, LCC has secured an Aviation Fuel supply contract with Q8 Aviation to supply EasyJet at Belfast International Airport.
Over the term of the contract, 135 million litres of Aviation Fuel will be supplied from the LSS terminal and in order to meet quality assurance standards for aviation product storage and transportation, the group has invested Â£1.5m on the installation of highly advanced plant and equipment at the terminal.
The independent, family-owned LCC Group was first established in 1986, but now employs 180 staff.
Originally a coal merchant, the group has diversified into oil, electricity and gas distribution and in 2015 reported turnover of Â£544m.
Dan Loughran, Director at LCC Group, said the acquisition of the oil terminal is strategically important for the company, as it will give it a significant competitive advantage.
"Logistically, transporting oil is expensive. It eats into profit margins, impacts on the environment and ultimately increases costs for customers," he said.
"The LSS terminal is used to import and store oil to allow for smooth, efficient transport to markets in NI and ROI. By owning the terminal outright, LCC Group will be able to control our costs and pass those savings on to customers.
"In a process where the time frame to completion was a critical differentiator for LCC Group, Danske's support in terms of the speed of credit approval, the structure of facilities, the overall level of support available, together with the management of the process to completion was essential to the success of this acquisition from our former joint venture partner."
Ciaran McLaughlin, Corporate Banking Manager at Danske Bank, added: "LCC Group is a prime example of the type of trading businesses we at Danske are keen to support in their growth journey. The company has a strong track record of investment and Danske Bank was ready to provide support when the company was presented with this opportunity to further strengthen its business in the North West.
"These types of high value infrastructure assets are normally owned by FTSE 100 corporations, not family-owned companies, so this transaction really demonstrates the scale of LCC Group’s ambitions for the future."