Credential Launches £4m Recycling Joint Venture
Credential Environmental, the vehicle waste and tyre reprocessing specialist has led a joint venture deal with global gas company BOC Gases and Toronto-based FieldTurf Inc, the world's leading artificial sports surface manufacturer.
The new venture, TyreGenics Ltd, will use a cryogenic process to produce large volumes of a commercially valuable material known as tyre 'crumb' from millions of waste tyres produced by Britain's cars each year. The process involves freezing rubber using liquid nitrogen and shattering the frozen rubber into minute pieces. The first plant is expected to open in South Wales in spring 2007.
The deal sees Credential Environmental take a majority shareholding in TyreGenics Ltd, with the remaining equity shared by the other partner companies. With approval from the Welsh Assembly the development will also receive a £1.4m grant from the European Union's Objective One fund in support of the jobs and commercial opportunities the venture will bring to South Wales.
Credential Environmental's Nick Wyatt and Andy Hinton will become managing director and chairman of the new company that will employ more than 20 staff at a purpose built facility at Port Talbot, South Wales. Credential Environmental, who's tyre collection business is operated by Credential Automotive based at Newton Aycliffe, County Durham will supply the venture with tyre chip from its Wednesbury, Breighton and Durham sites.
Andy Hinton said: “Our aim when we acquired Credential Environmental was to move the recycling of tyres and other automotive wastes forward and bring a new perspective on treatment and recycling. BOC initially approached us with an idea to develop a cryogenic plant in the UK, and we are pleased that with the other partners and European Union funding we have been able to make it happen. This is a great example of new thinking improving the way we look at traditional waste management processes, and we have more innovative ventures planned.”
Steve Patterson, director of Credential Automotive added: “As well as the jobs created directly in South Wales, the supply of such huge volumes of tyre chip will be great news for our plants at Wednesbury, Breighton near Selby and Durham.
“The new company's initial 30,000 tonne per annum production will be mostly used in the manufacture and upkeep of artificial sports pitches, but there are a number of commercially viable by-products that bring additional revenue potential.”
Canadian partner company FieldTurf designs and manufactures the surfaces at some of the world's most famous sporting clubs and stadia including the Denver Broncos, New York Jets and Barcelona's Nou Camp. The company has also installed practice grounds for the New Zealand All Blacks and many Premiership and Championship football clubs including Leeds United.
FieldTurf will buy most of the firm's initial output. Credential Environmental, Ailsa3's tyre recycling company has secured a contract to supply the plant with over three million waste tyres each year for the first five years of the Port Talbot plant's operation. BOC Gases is contracted to supply Tyregenics with liquid nitrogen from its plant in Margam, South Wales.
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