Partner Article

Northstar ‘WRAPs’ up a £1.2million investment package

A North East plastic packaging manufacturer has secured £1.2 million worth of investment, which will create up to 25 jobs.

Houghton-le-Spring based Re Pet Ltd received the cash injection, which has enabled them to purchase an extrusion machine and ancillary equipment for the company’s plastic production plant.

The firm produces plastic sheeting, containing between 50% to 100% recycled content, for products destined for the food packaging industry.

The raw materials used in PET (polyethylene teraphthalate) production are derived from crude oil, but by using recycled materials can offer a more environmentally-friendly manufacturing option.

Alex Buchan, Investment Manager at Northstar Ventures who supervised the venture, said: “We are delighted to be working with such a dynamic new company. Re Pet will redress the undersupply of recycled material in the UK market, and we believe the business has great potential.”

The firm received the cash boost from the North East Accelerator Fund, and the Waste & Resources Action Programme’s (WRAP) Accelerating Growth Fund (AGF) investing alongside management.

The company hopes to capitalise on future growth in the market with the expected switch from PVC to PET plastic.

The process involves sandwiching recycled plastic between thin layers of virgin material, which is then pushed through a die under high pressure, creating a plastic sheet tailor-made to an exact width and gauge.

Claire Kneller, AGF project manager, added: “This is the first time AGF has made a joint investment and WRAP is delighted to have been involved in this exciting new venture.

“We look forward to seeing Re Pet grow into a strong presence in the UK recycled plastics industry.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .