Plastic recycling firm receives 5m investment

And, the company has revealed that, after using the initial financing to develop a facility near Watford, North London, this year, it intends to develop a further 11 plants throughout the UK over the next five years as part of a larger 'framework agreement' with Kent-based investors Foresight.

The Hampstead-based recycling company manufactures a plywood substitute from waste plastic called ‘Eco Sheet', which can be used in the signage, automotive and construction sectors, and intends to expand its output to four million 'Eco Sheets' a year over the same five-year period, with mass production planned to begin in July 2009.

A spokesman for 2K Manufacturing told letsrecycle.com: “The process that we have is powder impression moulding, which is a fairly unique process, in as much as it allows us to take commingled plastics – such as mixed plastics – for reuse.”

The powder impression moulding (PIM) system treats the mixed plastic at a low heat and low pressure, which effectively granulates the feedstock making it ready for reuse as ‘Eco Sheets'. The PIM process also allows 2K to reprocess material which has high contamination levels.

Omer Kutluoglu, chief executive of 2K Manufacturing, said: “This milestone funding agreement enables 2K Manufacturing to fully implement its multi-site business strategy, with its first mass-production facility to open later this year. We are delighted to have teamed up with one of the UK's leading environmental investors, and enthusiastically welcome Andrew Page [partner at investment firm Foresight] to the Board of Directors.”

There are currently no contracts in place to supply source material for recycling at the proposed North London facility but the company claims that the funding was given on the evidence of abundant feedstock for the ‘Eco Sheets' process, citing WRAP research which indicates that mixed polymer plastics account for 93% of the plastic waste stream.

Foresight

Foresight – which is based in Sevenoaks, Kent – has invested in 60 companies over the past 20 years, and provided some financing for the development of the Closed Loop Recycling plant in Dagenham, which opened in June 2008 (see letsrecycle.com story).

Andrew Page, partner at Foresight, said: “2K represents a compelling investment opportunity in an attractive area of the environmental infrastructure market. The company has already seen strong interest from leading players in a number of industry sectors, including signs, automotive and construction industries.”

“And, we firmly believe that the strength and experience of management, coupled with the innovative product and patented process, means that 2K is well placed to capitalise on the opportunities which lie ahead,” he added.