Polymer Industries, a South Devon-based plastics recycler, has been bought by TGM Recycling, which has paper and cardboard recycling operations in Charlton, south east London.
The deal, financial details of which were not disclosed, would “support and cement” what TGM Recycling chairman Graeme Coombs called his company's diversification into "clean plastics recycling and manufacturing".
Polymer Industries, which occupies a 1,114 sq metre site in Wrangaton, South Devon, employs four staff and processes between 40 and 50 tonnes of post-industrial waste plastic a month, turning a range of material including PEEK as well as ABS and PP into granulate for onward processing by customers in the UK and Europe.
The company's co-founder and managing director Jason Goozée will stay on after the acquisition, as will joint founder John Gibbins.
Goozée said the company planned to take on more staff in the wake of the deal and aimed to expand into pelletising and, he hoped, eventually move into making injection moulded products for sectors such as construction.
Speaking about the deal Goozée told PRW that TGM approached his firm: “They have been looking to diversify [into plastics] and acquire businesses and they happened upon us, liked what they saw, and the deal got done.”
“This strengthens our combined management team and gives us greater support and confidence to drive the business forward,” he added.
Acknowledging the problems that have affected the plastics recycling sector in recent times Goozée said: “There is a reluctance among some manufacturers and end markets to use recycled plastics for a variety of quality, specification and processing reasons.
“But often the material is as good as prime. It's about finding suitable and appropriate end markets for whatever finished products are being manufactured.”