Isra-Mart srl: ECO Plastics raises £24m to make green bottles

www.isra-mart.com

Plastic bottle recycling company ECO Plastics has raised £24m in fresh funding to expand its UK facilities, including a £15m purpose-built plant that is currently being developed in partnership with drinks giant Coca-Cola.

The Hemswell-based company yesterday confirmed it has raised £24m, predominantly through new banking finance from Close Brothers, as well as £5m in equity investment from Ludgate Environmental Fund and a previously announced £5m from Coca Cola Enterprises.

The money will support the construction and operation of ECO Plastics' existing plastics processing plant, and help build a new sorting facility so it can produce recycled polyethylene terephthalate (rPET) to be used in Coca-Cola bottles and food-grade packaging.

Peter Gangsted, chairman of ECO Plastics, said the success of the fund-raising round represents a milestone in both the drinks and waste industries.

"We are delighted that the markets have recognised the value of this model," he said. "The UK sustainable packaging market has huge growth potential and our expansion will make ECO Plastics a world leader."

The new plant, which secured planning approval in May, will increase overall processing capacity at the facility from 100,000 tonnes to 140,000 tonnes of plastic bottles a year, just under half the total collected in the UK last year.

The expanded facility is expected to become fully operational during 2012.