A Tyneside-based recycling innovator has received the backing of Korean chemicals giant LG.
Impact Recycling in Wallsend, which specialises in separation of mixed waste, has received an undisclosed investment from the global operator in support of its "breakthrough" technology. The firm's baffled oscillation separation system (BOSS) technology is a water-based, density separation process that can sort plastics.
The method diverts significant quantities of polyethylene and polypropylene - both used in a wide variety of products - from landfill and incineration. Impact can transform the plastics into a resin sold to manufacturers for reuse in goods and packaging.
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Impact has received £4.6m investment through private equity firm IW Capital since 2019 - including £2.65m secured last year. LG Chem, which is part of the wider LG Corporation, says it wants to support rollout of the process and expects to follow its investment with a license agreement for the BOSS tech.
Christopher Soames, investment director at IW Capital, said: "We at IW Capital are very proud of Impact Recycling and their continued revenue growth. As our portfolio companies mature, we are made more and more aware of just how effective and important it is to believe in up-and-coming establishments and take them to the next level of growth; we can see this with Impact Recycling.”
Impact operates three sites including two in Newcastle and one in Glasgow. It is looking to open a further site in Durham this year. The firm has also received funding through Innovate UK and the EU’s LIFE programme.
Among the applications for the BOSS tech is recycling of film packaging. With no automated separation process on the market, these materials are typically either sent for incineration or exported to other countries to be placed in landfill and waterways which can create environmental problems.
David Walsh, CEO of Impact Recycling, added: "With the support of IW Capital, receiving the investment from LG Chem will ultimately help us to build a larger and more sustainable way of recycling plastic across the UK and the world. LG Chem has a reach and wealth of experience in the polymer markets to make a perfect partner for our expansion plans."
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