This is the first significant expansion for the company since a flotation of a 25% stake on the Alternative Investment Market last November which raised 1.5 million (see letsrecycle.com story).
The move will see Straight manufacture re-useable materials handling products such as crates, bakery baskets and pallets for the UK and European markets. Straight estimates the UK market for these products is worth in excess of 80 million per annum.
Straight's chief executive Jonathan Straight said: “Recent consolidation in the UK container market has left many customers without any real choice. We aim to fill the gap. By working with a world-leading player we can hit the ground running, with an off-the-shelf range and the ability to create new products very quickly.”
The Leeds-based company is working with the Rehrig Pacific Company of Los Angeles, which designs and produces plastic crates and pallets for the food and beverages markets The American firm has supplied companies such as CHEP, Wal-Mart, Hays Logistics, Anheuser-Busch and both Coca-Cola and Pepsi Cola bottlers.
Mike Doka, president of Rehrig Pacific, added: “Straight has been our leading recycling bin partner for over ten years. We’re excited to be expanding our relationship into new markets. This will allow us to better serve our customers with operations on both sides of the Atlantic.”
In the past, Straight has used recycled plastics to make its recycling bins and boxes but a spokesperson for the company told letsrecycle.com that it would only use recycled material if specified by a customer.
“The existing products are not made from recycled material,” he said, “But made to order could be. Recycled materials cannot use recycled products when crating food products but if a client in another sector particularly wanted recycled content that would not be a problem.”
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