A midlands-based skip company has secured £10 million to develop a 250,000 tonnes a year materials recycling facility. Kidderminster-based Lawrence Recycling and Waste Management plans to process commercial, industrial construction and domestic waste at its site called The Forge.
The £10m deal, organised and invested in by Orbis Partners LLP senior partner James Grenfell, is backed by Aberdeen Asset Managers Growth Capital, Barclays Bank and Advantage Transition Bridge Fund.
Grenfell, who has joined the LRWM board, said: It has become increasingly difficult for companies, even good ones, to attract investment in this challenging economic environment. However, this investment demonstrates that there is still financial support available for well-run businesses with good management teams, and a strong strategy for growth. There is no doubt that the Lawrence recycling facility will become a showpiece for other waste operators.
The industry is going through a different environment to the general economy and has different drivers. This makes it attractive to investors.
He said that the growth and development of the sector was encouragingly counter-cyclical to movement in other UK sectors at the moment.
LRWM purchased The Forge, a 210,000sqft brownfield site in Kidderminster 18 months ago and had already invested more than £1 million in the facility. When the MRF opens in the next few months, more than 70 jobs will be created.
LRWM managing director David Lawrence said: There is a significant opportunity for Lawrence to develop its business further with local businesses and significantly increase the amount of recycled commercial and industrial waste that is currently landfilled.
The Forge MRF
* Washing plant, producing clean, usable aggregate
* Dedicated bay for WEEE Directive goods
* Plastics processing - recovery and granulation
* Cleaned brick rubble crushing
* Wood chipping