Straight to manufacture bins after 2.9m purchase

Leeds-based recycling container supplier Straight has made a “big step” into bin manufacturing with the purchase of injection moulding firm Dyro Holdings for a consideration of £2.9 million.

Straight said that the purchase would enable it to move from using third party manufacturers for its bins to be capable of manufacturing its own containers. And, the company said Dyro's location in East Hull offered good road links to the UK ports, which would provide a new distribution hub for Straight and access to export markets.

Speaking to letsrecycle.com, Jonathan Straight, managing director of Straight, said: “The Group has traditionally used third parties to manufacture its containers and this is a move towards more vertical integration and we are seeking to control our own manufacturing, rather than the position we were in before.

“It is a big step, it is a very different way of doing business to the way that we have done it before and it also enables us to better meet our customers' requirements.”

Dyro Holdings – which trades as Powell Plastics – has a factory in Hull and operates over 20 injection moulding machines. It achieved a £10 million turnover to the year-ending December 31 2009.

The £2.9 million consideration consists of an initial payment of £970,000 with a further two payments of £970,000 each on the second anniversaries of completion. The initial purchase has been funded through a £1.5 million loan from Lloyds TSB.

Purchase

Dyro has been a supplier to Straight for a number of years and Straight said, during the last six months, trading with the company had “increased considerably”. This is on account of it hosting wheeled bin production equipment acquired by Straight from Helesi.

In addition to the products it manufactures for Straight, Dyro also has a proprietary injection moulding business which supplies shelving and storage products to the DIY sector. Straight said that the products are complementary to its garden and hardware business and cost saving and cross selling opportunities are expected.

Mr Straight added: “Our team has considerable experience in running manufacturing businesses at both Board and management levels and this will aid the speedy integration of Dyro into the Group. The Board has plans to further develop its new Hull site in line with the strategic goals of the Group.”