Recycling leader is backed

23/07/2008

Karen Dent, The Journal

A RECYCLING company has secured £6.1m to enlarge its plastic bottle reprocessing plant with help from Newcastle law firm Sintons and KPMG.

Wallsend’s Alternative Waste Solutions (AWS) will use the money to expand its plant at Hemswell in Lincolnshire, the world’s most advanced plastic bottle reprocessing site.

It turns plastic milk, water and fizzy drink bottles into flakes which are used to make other plastic goods.

The money, from current investor E-Synergy, plus Robeco Asset Management and two individuals, will fund expansion of the site from 44,000sqft to 120,000 sqft. Newcastle law firm Sintons advised on the deal, part of a £14m spend on boosting plant capacity from 25,000 to 100,000 tonnes.

AWS managing director Jonathan Short said: “This further investment provides additional capital to assist with the growth of AWS and allow it to take advantage of a rapidly developing market. AWS’s operation within the UK, currently comprising 50 employees, continues to grow and this growth is also reflected in our sales office in Hong Kong.”

Adrian Dye, a solicitor with Sintons commercial group, handled the deal and due diligence was by accountants KPMG. He said: “This is a significant investment for AWS. We have worked closely with the management team of AWS for a number of years.

“This further investment is part of the planned continued growth of AWS. It is always gratifying to be involved in companies which are ambitious and expanding successfully.

“As a firm, we have substantial experience of advising clients operating within the recycling sector, having recently advised on an approximate £50m investment project for Graphite Resources Ltd to construct a waste recycling facility.”

This the second cash injection for AWS this year. It had already attracted £1.5m from E-Synergy, plus £400,000 from NorthStar Equity Investors and £100,000 from a private investor.

The firm wants to increase revenue from £14m this year to £30m in 2009.

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