The UK’s largest purchaser and recycler of glass, Reuse Glass, is set to significantly improve efficiency and upgrade its sorting and treatment plants, following a new £15 million finance agreement with Santander Corporate & Commercial.
Reuse Glass acquired Berryman in 2000, which was founded more than 90 years ago and provides a nationwide glass collection service. This part of the business continues to trades as Berryman, and collects glass through bottle banks, kerbside and trade collections, as well as collection depots across the UK. Berryman has contracts with more than 180 local authorities.
Reuse Glass currently processes around 30 per cent of the UK glass recycling markets requirements, operating from its glass treatment plants in Knottingley, Doncaster, South Kirkby and Harlow.
The new financing agreement with Santander will enable Reuse Glass to upgrade two of its plants, in Knottingley and South Kirkby, with the introduction of new hi-tech colour separating machinery which will significantly improve efficiency, but will also generate an increase in production capacity for glass recycling within the UK.
Mark Wilson, CEO of Reuse Glass UK, said:
Santander really took the time to understand our business and delivered an innovative funding solution which will help us achieve our goals of business growth, brand development and job creation. The whole team at Santander showed real enthusiasm for what we want to achieve and communicated clearly with us throughout the process – it was a refreshing way to work with a Bank.
Mark Watson, Relationship Director for Santander Corporate & Commercial, said:
Reuse Glass is an excellent example of a strong, well managed local business with the potential to significantly grow. They offer a world class service, and have a real brand heritage across the Yorkshire region. We are delighted that they have chosen us as their new banking partner and I am looking forward to building our relationship in the months and years to come.
The UK produces around eight billion bottles and jars every year which equates to 2.7m tones of glass. Currently in excess of one third of this still finds its way to landfill. If this third of glass consumed was recycled and returned back to the glass industry, this would save around one million tonnes of raw material going into the glass industry and approximately 300,000 Megawatt hours of energy – enough to power more than 10,000 two-person households for a year.
Reuse Glass were advised by Hamish Morrison and Matt Scott of BHP Corporate Finance. Pinsents, Grant Thornton and Freeth Cartwright also worked closely with the business and Santander on bringing the transaction together.
Hamish Morrison of BHP Corporate Finance, said:
Changing legislative requirements and attitudes towards recycling have created a market with increased growth prospects. The Reuse management team continue to be proactive in looking to capitalise on these opportunities. The planned investment will enable Reuse to consolidate its position as the UK’s leading operator in the glass recycling industry.”