A £370,000 funding deal from Reward has put an industrial-scale tyre recycling plant in Scotland on the road to increasing revenue by 92% over the next 12 months.
Motherwell-based UK Rubber (UKR), which has over 40 years’ experience within waste management and tyre recycling, is utilising the working capital facility we’ve provided to invest in vital machinery, bolster production and increase its workforce by around a third to meet its ambitious growth targets.
The company helps businesses across Scotland significantly reduce carbon emissions by managing their waste tyre collection and disposal in an environmentally safe way. As part of its recycling process, its end-to-end solution extracts the steel fibres from each tyre and transforms the rubber into chippings and crumb to suit a range of purposes.
UKR has made giant strides in tackling the environmental issue of waste tyres being disposed of in landfill, since the Directive on the Landfill of Waste banned the landfill of whole tyres from 2003 and shredded tyres from 2006. Key to its success has come through working closely with local authorities, businesses and the Scottish Environment Protection Agency (SEPA).
The funding through our Business Finance solution has also helped UKR improve operational efficiencies, such as overcoming contamination within the steel extraction process, so that it can deliver a higher grade product that increases its market sale value by 100%.
The £370,000 deal is our biggest north of the border since we launched the Scottish arm our business earlier this year and was completed through working in partnership with CEO and asset finance specialist, Michael Savage at Glasgow-based Channel Finance.
Commenting on the new funding deal, UKR CEO Dave Ashurst, said: “We’ve always been a business that continually innovates and invests in cutting-edge processes, machinery and the people needed to meet the UK’s environmental waste management challenges. The funding facility provided by Reward gives us the working capital to do just that and transform the business at pace from an enhanced productivity, efficiency and job creation perspective.
“It promises to be an exciting 12 months ahead for UKR and we’re fully geared for growth to combat the 50,000 tonnes of waste tyres in the UK each year.”
Brian Machray, Business Development Director for Reward Finance Group in Scotland, added: “UKR is a real success story within environmental waste management across Scotland. It’s hugely satisfying to see that our tailored funding solution will enable Dave and his team to further innovate and propel the business forward on to another level.
“The finance provided to UKR is also a significant milestone as it represents the largest deal we have done in Scotland since launching here earlier this year. Our ability to provide the speed, simplification and transparency of lending is really resonating with SMEs across the country. It has led to us experiencing high demand from firms seeking business finance that allows them to tackle short-term economic challenges or maximise new revenue streams and opportunities for growth.”