UK's Recycling Technologies signs £50m offtake deal with InterChem

Source: ICIS News

2018/05/22

Recycling TechnologiesBARCELONA (ICIS)--UK chemical recycling start-up Recycling Technologies has signed an offtake deal with traders InterChem which will sell all the polymer feedstock – valued at £50m – produced by its plastics recycling facilities over the next five years.

Recycling Technologies said late on Monday it has developed technology which allows plastics from municipal waste to be converted chemically into a feedstock which can be fed back to chemical plants to produce recycled plastic.

Packaging which is difficult to recycle, such as crisp packets, can be processed.

The company aims to start up its first commercial-scale recycling unit at a municipal waste site near Perth, Scotland, at the end of 2018.

Recycling Technologies aims to build, own and operate 12 of the units over the next five years in the UK and northern Europe.

InterChem will sell the plastic feedstock produced by the plants which is known as Plaxx.

The facilities – each with a one tonne per hour processing capacity – will be manufactured in Swindon, UK, and shipped to waste recycling locations.

The company is currently negotiating to find sites for other plants it plans to build.

It is also looking for more chemical industry investors which wish to play a bigger part in the emerging circular economy.

Recycling Technologies aims to ramp up to producing up to 200 units/year in Swindon as demand for chemically-recycled plastic increases.

InterChem is also making a £1m equity investment in Recycling Technologies.

Separately, Recycling Technologies signed an offtake deal with UK wax manufacturers Kerax which has agreed to buy the Plaxx wax cut for the next five years, valued at £15m.

“We have been able to develop the technology that recycles even the difficult plastic packaging wastes, crisp packets, black trays and laminated materials," said Adrian Griffiths, CEO at Recycling Technologies.

"These partnerships secure the commercial outlet for Plaxx, making all waste plastic packaging valuable material.”

Look out for a longer article on Recycling Technologies in the 25 May edition of ICIS Chemical Business

Picture source: Recycling Technologies