Indigo Environmental Group has been launched to recycle UK industrial plastics.
Set up by former Avanti Environmental founder Paul Kinley, the business has begun buying plastics from manufacturers to turn into a high-quality product for use back in manufacturing using both end of waste and circular economy principles.
Based in Widnes, Cheshire, Indigo Environmental was started last September. It currently has two lines for high end segregation, washing and drying and another two dry lines for sorting. There is also one multi-purpose line.
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Indigo Environmental managing director Paul Kinley said: “We are not going for the black bag material that was previously sent to China.
“Instead, we are creating an end of waste high quality product to specification for UK industry. Indigo Environmental is handling 48 different grades of polymer and we will double that in the next year. We are supporting UK industry by sourcing material to be recycled from there, and then creating a product that can be used by UK manufacturers too.”
The company has already won contracts with two large automotive manufacturers to take automotive bumpers and other plastics and turn them back into a closed loop product along with a proportion of virgin material. Any excess material is then sold into the UK market.
It is also working with the food and beverage industry and packaging manufacturers. Indigo is also sourcing material from injection moulders and component manufacturers.
The business will also buy used wheelie bins from local authorities to reprocess and ultimately be remoulded into new wheeled bins
On its five production lines, it has just begun working a double shift, but intends to operate a 24-hour shift pattern later in the year.
It also has plans to expand the business rapidly.
Paul Kinley added: “We are looking at two other sites in the north west and two in the south to give us nationwide coverage. This is because we believe there is an opportunity in the market for locally sourced, high quality material. Plus, the economics doesn’t always work if you are moving material all over the country, as it is better value to process it locally.
“As a business, we are looking to acquire other plastics recycling companies. We are in discussion with two companies and looking at joint ventures for two other sites in strategic locations.”
On the recycling market, Paul Kinley believes that we will increasingly see the development of specialists.
He added: “We know the market well and know where the opportunities are. As we are an independent UK business, rather than a multinational, we have the ability to respond quickly to any opportunity we see.
“In the past, companies have been burned by trying to recycle everything. But I believe we will see a resurgence in niche reprocessors and for us, that will mean a focus on manufacturing-grade plastics, food contaminated containers and drums and wheeled bins.”