A three-way deal is set to see Recycling Technologies (RT) develop its Plaxx recycled plastic-based feedstock with a production line of some 200 machines a year.
The company said it had agreed a £50m deal with commodities trader InterChem under which the latter will buy the polymer proportion of Plaxx initially for five years and sell it to clients in the plastics industry.
A separate deal will see Kerax, a wax manufacturer, blender and trader, buy the £15m wax proportion of the material, again for the next five years, which will mean that RT will have sold the output from its first 12 RT7000 machines.
RT7000s can be used to recycle all types of plastics into Plaxx, the company said, including films, coloureds and laminates. Plaxx is an oil which replaces fossil fuel-derived feedstock in new polymer production and synthetic waxes.
RT said it would begin talks with waste site operators to install the machines to treat plastic that has historically been landfilled or incinerated.
The company’s long-term plan is to sell Plaxx to chemical companies as feedstock to create new plastic. It focused initially on turning waste plastic into transport fuel.
Chief executive Adrian Griffiths said: “These partnerships secure the commercial outlet for Plaxx, making all waste plastic packaging valuable material.
”We are particularly excited that polymer manufacturers can use this material to produce more plastic, significantly boosting the circular economy credentials of plastic.”