The Welsh Government is financially supporting the acquisition of the assets and equipment of Plastics Sorting Ltd by new firm Viridis Plastics UK Ltd.
Repayable finance is being provided by the Welsh Government for the 100,000 sq ft plastic sorting and purification plant based in Blackwood, which opened in 2007.
Viridis Plastics Group managing director Gregg Twomey 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 that the company already has orders for 20,000 tonnes of PET and anticipate reaching capacity production within 18 months and he has every confidence it will meet all targets.
The facility is likely to begin operations again in June with material exported to France, Germany and Ireland initially.
Welsh Government 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 its longer-term proposals for the business.”