04 December 2012 12:26 [Source: ICIS news]
LONDON (ICIS)--UK plastic bottle recycling company ECO Plastics has raised £6m ($9.6m, €7.9m) from existing investors to finance its expansion plans over the next year, shareholder the Ludgate Environmental Fund (LEF) said on Tuesday.
LEF and SAM Private Equity are among the backers contributing to the capital-raise, which will be used to fund “short-term added-value expansion opportunities”, according to European cleantech sector-focused investor LEF.
Close Brothers, ECO Plastics’ debt provider, has also agreed to provide additional working capital facilities to support the expansion.
ECO Plastics managing director John Short said: "ECO Plastics is now ready to tackle another period of rapid growth. We have made huge progress over the last three years and this investment leaves us ideally positioned to continue to develop our state-of-the-art facilities and to take advantage of any other expansion opportunities that arise."
The fundraising follows the £24m raised by the company in July 2011 to fund a processing capacity expansion of its Hemswell, UK, plastic bottle recycling facility to 140,000 tonnes/year, and to finance a joint-venture with Coca-Cola.
The joint-venture involves the construction and operation of a recycled polyethylene terephthalate (R-PET) plant, to supply Coca-Cola with R-PET for use in soft drinks packaging.
ECO Plastics also received a £1.5m loan from UK government-funded recycling and resource efficiency organisation WRAP to expand its rigid plastic sorting facilities in February this year.
(£1 = $1.60, £1 = €1.31)
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