Re Pet, based in the United Kingdom, has secured £1.2m in investment as it looks to become one of the largest businesses of its kind in the U.K.
Re Pet began in 2010 with the goal of supplying the packaging industry with recyclable plastic sheeting, which is used to make food cartons for supermarkets in the United Kingdom.
The company recently announced plans to begin marketing its product and says it hopes to reach sales of between £5 million to £6 million (US$8 to $9.6 million) per year.
Re Pet has received investments from the North East Accelerator Fund, which is managed by Northstar Ventures, based in Newcastle, U.K. The firm also received funding from the Waste & Resources Action Programme’s (WRAP) Accelerating Growth Fund.
The company has purchased a machine that sandwiches recycled plastic between thin layers of plastic polymer material, which is then pushed through a die under high pressure to create plastic sheeting. Re Pet says it expects to make 100 metric tons of material per week with the help of the machine.
Re Pet foresees rapid growth and hopes to attract enough additional investment to secure a second, more advanced machine this fall that would triple its output.
In a release announcing the investment, John Forrest, Re Pet’s managing director, says, “Currently the U.K. imports two-thirds of the PET material used in food packaging. We want to change that and become one of the largest PET manufacturers in the country.”
He adds, “By the end of the year we plan to be manufacturing from two large machines, which will allow us to triple our output and help us to achieve a turnover of between £5 million and £6 million and then grow this to £15 million after that.”
The company is seeking to expand within its 47,000-square-foot factory in Houghton-le-Spring, U.K., and it is considering entering the export market.
Alex Buchan, investment manager at Northstar Ventures, says, “We are delighted to be working with such a dynamic new company. Re Pet will redress the undersupply of recycled material in the U.K. market, and we believe the business has great potential.”