ERT uses waste plastics for its PIM process
Environmental Recycling Technologies PLC has announced a new UK joint venture licensee for its Powder Impression Moulding (PIM) process, which converts mixed waste plastics into commercially viable products.
The company has signed heads of terms with Metallis Recycling Limited (MRL) an international metals recycler, for the manufacture and sale of PIM flat sheet for the UK market.
The joint venture will initially be owned 50 percent by MRL and 50 percent by ERT. ERT will grant the joint venture an exclusive UK licence to manufacture and sell PIM flat sheet in exchange for a knowledge transfer and licence fee of £1million.
MRL will grant the joint venture an exclusive UK licence for the use of its proprietary technology in the field of plastics processing, for a knowledge transfer and licence fee of £1million. These licence fees will be paid in instalments as the joint venture company begins operation. MRL will fund the joint venture by way of a loan of up to £1million whilst seeking additional investors to fund the expansion of the facility.
ERT will also receive royalty payments on each PIM product manufactured and sold by the joint venture company.
“We are delighted to have established a joint venture with Metallis Recycling Limited to reintroduce flat sheet PIM board to the UK market,” said Lee Clayton, Managing Director of ERT.
“We have been looking for a partner who could take on the manufacture and supply of this sought after product and have actively decided upon a closer participation with our new flagship UK manufacturer so that we can contribute more actively to the business.
“We have spent the last year building a relationship with Mettalis Recycling and have carefully constructed a business plan that benefits our shareholders and our new partner. This announcement is in line with our business plan, which lays out ERT’s focus to continue to form strong strategic cooperation with like-minded companies”
Commenting on the announcements, Tom Bird, Managing Director of MRL, said: “We are very excited about entering into this partnership with Environmental Recycling Technologies. This is the first major step for Mettalis with regard to our forward strategy of moving to diversify our business into innovative recycling solutions.”