Swindon-based plastic waste pioneer Recycling Technologies has secured two deals with a combined value of £65m as it looks to develop a nationwide chain of specialist recycling machines.
The firm’s innovative RT7000 machine – which it builds at its South Marston UK headquarters and manufacturing plant – recycles a wide range of household plastic waste, including crisp packets, into a valuable oil called Plaxx.
Recycling Technologies’ strategic business alliance with global petrochemical group InterChem covers the forward sale of Plaxx over the next five years.
The move means that the output from the firm’s first 12 RT7000 machines to be installed across the UK and Northern Europe has already been sold before they come on stream.
It follows an equity investment of £1m into Recycling Technologies by InterChem last month.
The firm has also forward sold for £15m the wax proportion of Plaxx to Lancashire-based Kerax, a leading manufacturer of blended and speciality performance waxes for packaging, candles, waterproofing and surface coatings.
The RT7000 can be easily sited at existing waste centres to recycle all types of plastics, including hard-to-recycle films, coloured and laminated plastics that have historically been landfilled or sent to incineration.
Just 10% of valuable plastic waste materials are recycled each year.
Its first machine is planned to be installed later this year in Scotland and the company has had interest from sites in the UK and Northern Europe for the subsequent machines.
Recycling Technologies is now establishing its assembly facility in Swindon to build up to 200 RT7000s a year to meet the additional anticipated demand for its distributed plastic recycling solution.
Recycling Technologies CEO Adrian Griffiths said: “We are delighted to be able to announce an important new strategic alliance with InterChem and the contract with Kerax, together worth over £65M.
“With the support of BEIS, Swindon Borough Council, Zero Waste Scotland and our investors, we have been able to develop the technology that recycles even the difficult plastic packaging wastes, crisp packets, black trays and laminated materials.
“These partnerships secure the commercial outlet for Plaxx, making all waste plastic packaging valuable material. We are particularly excited that polymer manufacturers can use this material to produce more plastic, significantly boosting the circular economy credentials of plastic.”
InterChem is a global commodities trader that specialises in the logistics, shipping, storage, blending and financing in the global petroleum and petrochemical industry with offices around the world.
InterChem CEO Robert Langstraat said: “We see great value in building a partnership with Recycling Technologies as its talented management team has developed a commercial solution to recycle plastic. We have agreed to purchase significant volumes of the fossil fuel alternative, Plaxx for the next five years providing our clients with industrial quantities of recycled plastic feedstock critical for the future of plastics manufacturing.”
Kerax has been an enthusiastic supporter of Recycling Technologies and its chief executive Ian Appleton has personally invested in the firm to help it develop technology that recycles and reuses plastic waste.
Mr Appleton said: “The supply of traditional waxes is set to decline sharply in the coming years. To have a source of wax from recycled plastic is a major innovation that fits in perfectly with our aim of supply source diversity.
“Not only that, it will offer our customers the opportunity to purchase waxes that will enhance the global environment. Kerax look forward to working with the Recycling Technologies team and InterChem to grow this opportunity.”
