Recylex receives loan from Glencore

Recylex SA, a French recycling firm that specializes in recycling lead and plastics, primarily from automotive and industrial batteries, has signed a loan agreement with Glencore International AG for €16 million (US$20 million). The company also put in place a contingent equity line with Kepler Cheuvreux to strengthen its cash position. Recylex also is involved in recycling zinc from electric arc furnace dust.

Glencore International, a diversified natural resource companies and a major producer and marketer of more than 90 commodities, presently has a 32 percent stake in Recylex SA.

Recylex says the Glencore loan will allow it to cover its 2014-2015 projected cash requirements.

Yves Roche, chairman and CEO of the Recylex Group, says, “This financing reflects our determination to find solutions to address the heavy burden of the past we inherited, as well as our commitment to save our group, our jobs and our unique expertise in urban mine recycling in Europe.

“The loan will help us meet our projected cash requirements, essentially linked to our continuation plan, on sustainable financial terms, thanks to the support of our main shareholder, Glencore.

“The success of our search for financing confirms our teams’ efforts, their will to move forward and their solidarity. Major challenges lie ahead, starting with continued efforts to restore the group’s margins, particularly in the lead segment,” Roche concludes.