The Sustainable Technology Fund (STF), managed by E-Synergy, has teamed up with Robeco Clean Tech Private Equity II to make a £6 million follow-on investment into AWS Ecoplastics, a plastic recycling specialist.

The Sustainable Technology Fund (STF), managed by E-Synergy, has teamed up with Robeco Clean Tech Private Equity II to make a £6 million follow-on investment into AWS Ecoplastics, a plastic recycling specialist.

The £6 million equity finance will be delivered in two stages throughout the year. STF, which backs companies that develop clean and efficient industrial processes, will provide £1 million while Robeco will inject £5 million into the recycling business.

The investment provides additional capital, which will enable the Newcastle business to expand its plastic bottle processing plant. Its strategy is to become the first UK producer of food-grade pellets that allow domestic drinks companies to increase the proportion of recycled materials in bottles.

STF investment director Sam Richardson said: “AWS is a profitable company with a huge opportunity to lead the UK market in food grade recycled plastics. There are significant drivers working in its favour, including customer demand on drinks companies to use more recycled content in their bottles along with regulatory pressure to reduce materials going to landfill.”