Scotland’s first industrial-scale tyre recycling plant is aiming to increase revenues by 92% over the next 12 months, after securing a £370,000 funding deal with Reward Finance Group.
Motherwell-based UK Rubber (UKR), which has more than 40 years’ experience within waste management and tyre recycling, is utilising the working capital facility provided to invest in new machinery, bolster production and increase its workforce by 30%.
The company helps businesses across Scotland reduce carbon emissions by managing waste tyre collection and disposal, As part of its recycling process, its solution extracts the steel fibres from each tyre and transforms the rubber into chippings and crumb to suit a range of purposes.
UKR has made strides in tackling the environmental issue of waste tyres being disposed of in landfill, since the Directive on the Landfill of Waste banned the landfill of whole tyres from 2003 and shredded tyres from 2006.
The £370,000 deal with UKR is Reward's biggest north of the border since launching the Scottish arm of its business earlier this year.
The funding, through the lender’s business finance solution, has also helped improve operational efficiencies, such as overcoming contamination within the steel extraction process, so that it can deliver a higher grade product that increases its market sale value by 100%.
The deal was brokered between Reward and UKR by asset finance specialist Michael Savage at Glasgow-based Channel Finance.
UKR chief executive Dave Ashurst, said: “The funding facility gives us the working capital to innovate and transform the business at pace from an enhanced productivity, efficiency and job creation perspective.
“It promises to be an exciting 12 months ahead for UKR and we’re fully geared for growth to combat the 50,000 tonnes of waste tyres in the UK each year.”
Brian Machray, business development director for Reward Finance Group in Scotland, added: “The finance provided to UKR is also a significant milestone as it represents the largest deal we have done in Scotland since launching here earlier this year.”
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