Motherwell-based UK Rubber has been collecting and processing tyres for a couple of years and has longer term plans to build its business to cater for Scotland’s estimated 50,000 tons of tyre arisings each year
Developing a tyre recycling business is both time and resource intensive with capital equipment costs that can be eye-watering.
UKR aims to boost its revenues by 92 per cent in 2023, thanks largely to a funding deal with the Reward Finance Group.
The £370,000 funding will see the company invest in vital machinery, bolster production, and increase its workforce by 30 per cent to meet its ambitious growth targets.
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).
With Reward providing SMEs with tailored business finance loans and asset based solutions between £50k and £5m, the £370,000 deal with UKR is its biggest north of the border since launching the Scottish arm of its business earlier this year.
The will also helped 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%.
Commenting on the new funding deal, UKR CEO Dave Ashurst, said; “We have 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 the UKR team to further innovate and propel the business forward on to another level.”
Photograph: (Left to Right) Dave Ashurst and Brian Machray