Member Article

Investors still sought for £80m recycling facility

Industrial entrepreneurs are struggling to get a £80m tyre recycling facility off the ground - but insist they are still hopeful.

Plans for PYReco’s new facility at Middlesbrough’s South Tees Eco Park, in South Bank, were first revealed six years ago, when £1m of Government cash was committed towards the project.

But two separate deals with investors have since broken down.

Around 60,000 tonnes of shredded rubber a year - the equivalent of 7.5m tyres - will be diverted from landfill to the proposed site.

Thousands of tonnes of valuable carbon black, steel and oil will be produced each year, and 500,000 tonnes of emissions saved.

The pilot plant will create 90 permanent and 100 construction jobs and, it’s claimed, will generate tens of millions for the North East economy.

The businessmen behind the deal insist it’s a no-risk project after being entirely under-written by Metso, a major global supplier to the process industries.

They have appointed a finance director and claim they’re attracting new interest from the Middle East.

“We had two very strong offers of finance,” said Noel Harasyn, who co-founded PYReco with chair Antony Carter.

“The first was from the Middle East and latterly from South Africa. Both fell through.

“We were bitterly disappointed, but we have all got clenched fists and a dogged determination.

“The project is shovel-ready. Just over £1m was committed by Government. But we would like the Government to get behind the project a little more.

“We are attracting new interest, certainly from the Middle East, but not the UK.

“The venture capitalists are risk-averse - this isn’t a risk project, the risk is absolutely minimal to the investor.

“Metso has been building pyrolysis plants on a massive scale since 1937 for the likes of Rio Tinto and Shell.

“All the boxes are ticked, it’s just about finding investors.”

The company has worked with North East clusters including NEPIC for the last six years and the support has been “phenomenal”.

This was posted in Bdaily's Members' News section by Martin Walker .