A plastics recycling company which went into administration earlier this year has been sold – with the potential of up to 80 new jobs.
Plastics Sorting Ltd, based on Blackwood Business Park, in Pontllanfraith, went into administration in February this year with the loss of almost 30 jobs.
Irish company Viridis Plastics Ltd has now bought the assets of the firm through a specially established UK arm.
The Welsh Government is supporting the acquisition with repayable finance to ensure the assets and equipment of Plastics Sorting are retained in Wales as a basis for investment and job creation.
The investment by Viridis Plastics UK Ltd will initially create 30 jobs – with the potential to increase to 80 jobs within three years.
Business Minister Edwina Hart said: “I am pleased the Welsh Government is supporting Viridis Plastics with repayable business finance to ensure that the Blackwood facility achieves its full potential and becomes a leader in the sector.
“By supporting this acquisition it provides an opportunity to create a sustainable business with potential for growth that brings economic benefits and jobs to Wales.
“The company operates in the energy and environment sector, one of the Welsh Government’s priority sectors with potential for high growth and I am pleased to hear of their longer term proposals for the business.”
Stricken Plastics Sorting Ltd created a 100,000 sq ft plastic sorting and purification plant in 2007 where it recycled plastic bottles and converted them into plastic flake. It had an annual turnover of around £1.2 million.
A venture involving social enterprise and the private sector, with the support of the Welsh Government and the Charity Bank, it was billed as a “strategic investment in the plastic supply chain for Wales, the West Midlands and the West of England”.
Gregg Twomey, MD of Viridis Plastics Group, said: “We have committed to a major, long term investment in this project and support from the Welsh Government has been pivotal in getting it off the ground.
“The Blackwood facility is the only recycling facility of its type in Wales and the largest in the West of the UK. It provides us with the opportunity to become the industry leaders in the development of recycled PET.
“We have some exciting and ambitious plans in the pipeline and want to grow the business in Wales. Our medium term plan includes establishing a plastic sorting facility in the South Wales valleys with the potential to create up to eighty jobs over the next three years.”
He added they already have significant orders for 20,000 tons of PET and anticipate reaching capacity production within 18 months and have every confidence they will meet all targets.
The company estimates that the Blackwood facility will be operational from June and recruitment has already started.
Viridis will be exporting product to France, Germany and Ireland initially.