UK metal recycler Rank Metal has signed a US$20 million (£12.5 million) trade facility agreement with the Bank of London and the Middle East.
The financing agreement will allow Rank to finance more metal and expand its ferrous and non ferrous metal recycling activities worldwide.
By making the trade facility available, the bank will provide the firm with up to US$20 million in order to procure scrap metal from the UK and Europe. The bank will finance up to 70 per cent of the scrap value, while Rank will own 30 per cent, with repayment coming from the proceeds made once the metal is sold on. The arrangement is ongoing, but both parties will review and assess progress after six months.
BLME trade finance director Rodney Ballard said: This agreement is unique in the current market as there is not significant new investment in the metals recycling industry at the moment. We are supporting Rank which has a viable business model, with an existing reputation which is already operational.
According to Rank, the money will enable it to reprocess up to 40,000 tonnes of metal each month. It also hopes to invest in melting equipment, which removes paint and paper from tin cans, creating a better quality metal and adding value.
Currently, its operations take place in Bedford, where it is able to reprocess 20,000 tonnes of tin cans and 3-4,000 tonnes of stainless steel. In total its UK capacity is 36,000 tonnes each month. Rank has also identified a possible site in Reading which would provide additional space for expansion and extra capacity if necessary. The firm has existing operations in Asia and hopes to expand further, with more recycling sites in the UK and to eventually spread out to the US.
Rank Metal managing director Amit Narang said: Most scrap metal companies stay in one area and trade from that single location, but we hope to be different and be the first global scrap metal firm.