Private equity firm IW Capital has confirmed a £2.65m second round investment in Impact Recycling, having initially backed the green-tech business with £2m in 2019.
The most recent injection of capital is aimed at accelerating growth and finishing a new operational site in Bellshill, Glasgow.
Impact Recycling has developed technology enabling previously difficult or impossible types of plastics to be recycled. Specifically, it separates the components of post-consumer, mixed plastic waste to recover two consistent streams of plastic - polyethylene (PE) and polypropylene (PP) - each with more than 98% purity.
Its unique system of water-based, density separation - a process known as Baffled Oscillation Separation - improves the economics of plastic recycling for users and diverts significant quantities of PE and PP away from landfill and incineration. Waste is instead transformed into a reusable form, which is sold on to manufacturers who can repurpose it for goods or packaging.
IW Capital’s initial 2019 investment was targeted at developing the separation technology and developing two sites in Newcastle, which are now successfully in operation.
In addition to the total investment of £4.65m from IW Capital, Impact Recycling has also received significant grant funding, targeted at the development and completion of the new Glasgow site.
Once completed, the Bellshill hub is also expected to bring a number of new jobs to the area.
David Walsh, chief executive of Impact Recycling, said: “In the time we have been working with IW Capital since 2019 we have come to know them as a trusted, reliable investor that have enabled us to expand our business and continue with our innovations in the plastic recycling sector. We look forward with confidence to a lasting relationship.”
Luke Davis, founder of IW Capital, added: “Having been onboard with Impact Recycling since 2019, it has been fantastic to watch their growth over the past three years - now boasting three sites across the UK.
“Given their recent success, we’re delighted to announce that we’ve invested a further £2m, which will contribute to the development of the new landmark site in Bellshill.
“With green technology and protecting the environment becoming some of the most important focuses for economies all over the world, we see real potential to help Impact Recycling grow and deliver much-needed services in the UK and potentially even further afield.”
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