Mettalis Recycling signs joint venture deal with Environmental Recycling Technologies

Environmental Recycling Technologies plc (ERT), which owns the patent to the Powder Impression Moulding (PIM) process, has signed an agreement with the U.K.-based recycling company Mettalis Recycling Ltd. (MRL) to incorporate a joint venture company through which ERT intends to grant an exclusive license for the manufacture and sale of its PIM flat sheet for the U.K market.

ERT’s PIM process converts mixed waste plastics into commercially viable products.

The joint venture will initially be owned 50 percent by MRL and 50 percent by ERT and will hold the U.K. license to manufacture and sell PIM flat sheet in exchange for a knowledge transfer and license fee of £1million.

Meanwhile, MRL will grant the joint venture an exclusive U.K. license for the use of its proprietary technology in the field of plastics processing, for a knowledge transfer and license fee of £1million (US$1.565 million).

The license fees will be paid in installments as the joint venture begins. MRL will fund the joint venture through a loan of up to £1million while seeking additional investors to fund the facility’s expansion.

ERT also will receive royalty payments on each PIM product manufactured and sold by the joint venture.

Lee Clayton, ERT’s managing director, says, “We are delighted to have established a joint venture with Mettalis Recycling Ltd to reintroduce flat sheet PIM board to the U.K. market. 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 U.K. 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.”

Tom Bird, managing director of MRL, says, “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. This joint venture will complement another bespoke initiative, which will see Mettalis at the forefront of metals and plastics recycling.”