Recycling firm seeks Impact with £3m IW Capital investment

A plastic recycling business which counts Nestle, the Swiss consumer goods giant, among its backers, will this week unveil a multimillion pound capital injection from one of its key shareholders.

Sky News understands that Impact Recycling, which uses a complex process to separate mixed plastic waste into 'high-purity' output, has struck a deal to secure £3.3m from existing venture capital backer IW Capital. Impact Recycling, which has received a grant from the government agency Innovate UK and a £7m loan from Nestle, counts the NHS as a major customer at its Glasgow site, where it recycles medical plastic waste.

Money latest: My insurance firm charged me £700 after my dog died - is this right? The company is also backed by LG Chem, Korea's biggest chemical company, reflecting the growing demand among global industrial groups for more sustainable environmental solutions to their manufacturing processes. IW Capital's latest investment comes during a period of significant regulatory change, including in the form of the EU's Plastic Packaging and Plastic Packaging Waste Directive, which mandates 35% recycled content to be used in any plastic packaging by 2030.

That figure will rise to 60% by 2040, posing a major industrial challenge. David Walsh, CEO of Impact Recycling, said: "With strong demand from global partners and our licensing model gaining traction, we're well-positioned to scale our operations." The new capital is to be used in part to expand Impact Recycling's operations to new markets.

Read more from Sky News:Unemployment rate highest in four yearsPaternity pay in UK 'among lowest in developed world'Government commits £14.2bn to new nuclear power station "Impact Recycling exemplifies the kind of business we're proud to support-deeply innovative, commercially proven, and playing a critical role in the future of sustainable materials," Alan Armstrong, chairman of IW Capital, said. "Their proprietary technology and strong customer traction make them a standout opportunity in a market undergoing rapid regulatory and consumer-driven change.".