Scottish tyre recycling business secures £370,000 funding deal
Scotland’s first industrial-scale tyre recycling plant aims to increase revenues by 92% over the next 12 months after securing a £370,000 funding deal with Reward Finance Group.
Motherwell-based UK Rubber (UKR), which has over 40 years’ experience within waste management and tyre recycling, is utilising the working capital facility provided by Reward to invest in vital machinery, bolster production and increase its workforce by 30% to meet its ambitious growth targets.
The company helps businesses across Scotland significantly reduce carbon emissions by managing their waste tyre collection and disposal in an environmentally safe way. As part of its recycling process, its end-to-end solution extracts the steel fibres from each tyre and transforms the rubber into chippings and crumb to suit a range of purposes.
UKR has made giant strides in tackling the environmental issue of waste tyres being disposed of in landfill, since the Directive on the Landfill of Waste banned the landfill of whole tyres from 2003 and shredded tyres from 2006. Key to its success has come through working closely with local authorities, businesses and the Scottish Environment Protection Agency (SEPA).
With Reward providing SMEs with tailored business finance loans and asset based solutions between £50k and £5m, the £370,000 deal with UKR is its biggest north of the border since launching the Scottish arm of its business earlier this year.
The funding through the lender’s Business Finance solution has also helped improve operational efficiencies, such as overcoming contamination within the steel extraction process, so that it can deliver a higher grade product that increases its market sale value by 100%.
The deal was brokered between Reward and UKR by CEO and asset finance specialist, Michael Savage at Glasgow-based Channel Finance.
UKR CEO Dave Ashurst said: “We’ve always been a business that continually innovates and invests in cutting-edge processes, machinery and the people needed to meet the UK’s environmental waste management challenges. The funding facility provided by Reward gives us the working capital to do just that and transform the business at pace from an enhanced productivity, efficiency and job creation perspective.
“It promises to be an exciting 12 months ahead for UKR and we’re fully geared for growth to combat the 50,000 tonnes of waste tyres in the UK each year.”
Brian Machray, business development director for Reward Finance Group in Scotland, added: “UKR is a real success story within environmental waste management across Scotland. It’s hugely satisfying to see that our tailored funding solution will enable Dave and his team to further innovate and propel the business forward on to another level.
“The finance provided to UKR is also a significant milestone as it represents the largest deal we have done in Scotland since launching here earlier this year. Our ability to provide the speed, simplification and transparency of lending is really resonating with SMEs across the country. It has led to us experiencing high demand from firms seeking business finance that allows them to tackle short-term economic challenges or maximise new revenue streams and opportunities for growth.”