AWS secures final £4m to expand recycle plant

Nov 7 2008 by Peter McCusker, The Journal

A FAST-GROWING recycling company has got the final £4m it needs to complete a £14m expansion at a plastic bottle reprocessing plant – which when complete will be one of the biggest in the world.

AWS Ecoplastics has signed a £4m deal with Lloyds TSB Corporate Markets to fund the final stages of a capital expenditure project which will increase its recycling capacity by 400%.

The expansion will help the company achieve its three-year plan to grow the company’s turnover from £5m to £34m per annum and double its 50-strong workforce.

Newcastle AWS, the UK’s largest plastic bottle recycler, was formed in 2000 to increase the diversion of waste from landfill sites to recycling. Its core business involves buying waste plastics from recycling companies throughout the UK and Ireland, reprocessing the materials and selling them to bottle producers worldwide.

Jonathan Short, managing director, of AWS, based at Wallsend’s Britannia Business Park, said: “During the last seven years, we are proud to have built up the company to become the market leader. We have set some stretching growth targets to treble our 2007 turnover in 2008, and more than double our forecasted 2008 turnover in 2009.

“In order to achieve this, it was necessary to increase our recycling capacity from 24,000 tonnes to 100,000 tonnes per annum.”

Paul Turner, head of sustainability, Lloyds TSB, said: “If the UK is to reach its target of reducing its carbon emissions by 80% by 2050, there needs to be a transformation of behaviours among the business community.

“The company is seizing the opportunities and the competitive advantage within an emerging market, and will have a chance to shape its future.”

Richard McEvoy, relationship director, Lloyds TSB Corporate Markets, said: “It’s very satisfying to see the positive impact of the funding package and be part of the next exciting phase of its development.

“This deal once again demonstrates that despite the current economic climate, Lloyds TSB Corporate Markets is able to support good quality businesses, such as at AWS.”

In July this year AWS secured £6.1m to expand the plant at Hemswell in Lincolnshire from E-Synergy, Robeco Asset Management and two wealthy individuals.

The plant turns plastic milk, water and fizzy drink bottles into flakes which are used to make other plastic goods. Much of the recycled plastic is exported to China, Hong Kong and South Korea