Asset finance helps new start up fill gap in the market
Incorporated in April 2016, UK Plug Recycling Ltd is a new start up company as a result of Director, Justin Beverley, noticing a gap in the market for lucrative plug recycling. Plug recycling is a huge market opportunity with an estimated national volume in non hazardous WEEE recycling reported to be circa 1.4m metric tons in the UK alone. Plugs and sockets represent 5% of total volume at circa 80,000 tons in the UK per annum.
First in the UK to offer this service
Having previously worked for a recycling and waste management company, Justin gained valuable knowledge and experience as a site manager. Along with fellow Directors Tracey Stevens and Samuel Edwards, they aim to capture this market by purchasing plugs from WEEE recyclers above the current steel and WEEE rate. There are currently no recyclers in the UK offering this service and initial sourcing of waste has been successful with 200 tons projected in feed so far from minimal resources.
Justin hoped to invest in a small UNTHA RS40 4 shaft shredder and intends to start with a collection service for plugs and sockets from UK recycling centres by way of 3.5 ton drop side pickup, and also take in at the gate.
A tailored finance solution
UK Plug Recycling’s base will be a farm industrial unit in a rural location. It is remote enough to circumvent any noise issues and large enough for the small scale processing required. The site has been visited by Gary Moore at UNTHA UK who will be supplying the asset and deemed suitable for the company’s shredding requirements both in size, access, location and power utilisation. As it is not far from the port of Southampton where Justin’s stocks will be shipped from, he will have his non ferrous collected monthly by EMR who ship straight out of the port to European smelters.
Gary introduced Justin to Paul Hindle, Regional Sales manager – Construction & Recycling, Close Brothers Asset Finance, to discuss finance options to fund the shredder. Paul found Justin’s business model to be highly profitable and taking this into consideration with Gary’s report from his visit to the site, he was able to offer a bespoke Hire Purchase agreement. By the end of the 60 month term, the UNTHA RS40 4 shaft shredder would belong to UK Plug Recycling.
Onwards and upwards
Justin already has verbal agreements in place with a number of companies with expected volumes of 200 tons and he is in talks with Avanti UK Via UNTHA UK’s introduction who may take this waste, reprocess it for a fee and net back further non ferrous which will have a cost saving value.
Commenting on the deal, Justin said: “Seeking and obtaining the perfect asset finance solution was essential in helping us move our business forward with future plans. Close Brothers Asset Finance was the obvious choice and the advice and expertise that Paul offered helped to secure the perfect finance package to suit our needs.”