November 28 2019 @ 13:21 by Richard Dawson
A Newcastle recycling business is planning to expand after securing £2 million of investment.
Impact Recycling, which is based in Wallsend, plans to use the investment to upgrade its equipment and create new jobs, as well as improve its shift patterns and funding licence opportunities.
The company specialises in designing solutions for plastics that are hard to recycle, and recently developed a pioneering new method known as BOSS (Baffled Oscillation Separation System).
The new system works by separating the components of mixed rigid plastic waste into polyethylene (PE) and polypropylene (PP).
The water-based process separates the plastics while achieving a purity rate of more than 95 per cent, which greatly increases the quality and value of the plastic being recycled and reused.
It’s thought that the new technique could be used to significantly reduce the amount of plastics that end up in landfill sites across the country.
David Walsh, CEO of Impact Recycling, commented: “This investment from IWC will allow us to accelerate the growth of our breakthrough BOSS technology, significantly increasing the amount of plastic recycled in the UK and paving the way to a circular plastic economy.”
The £2 million funding was provided by private investment firm IW Capital, which specialises in alternative finance, as part of their ongoing scheme to support growing companies across the UK and help them develop and deliver their business plans.
The firm structured the investment on behalf of its investors and will continue to manage it going forward.
Luke Davis, chief executive of IW Capital, said: “We are all really excited to be providing this investment for Impact Recycling, both in terms of the inventive service they provide and the exit opportunity that the business presents.
“In recent years there has been an increasing appetite within investors to support ethical and forward-facing businesses while retaining the same rates of return on their capital. This type of opportunity offers both, through an innovative and scalable solution to one of the biggest problems facing the world today.
“We have seen tremendous demand for SME investment opportunities in the last 18 months and this is no exception.”