Re Pet secures £1.2 million fundraising

The North East Accelerator Fund has backed plastics manufacturer Re Pet in a fundraising round that secured £1.2 million for the business ahead of the launch of its products.

Founded last year, Re Pet, based in Houghton-le-Spring, plans to supply the packaging industry with recyclable plastic sheeting, polyethylene terephthalate (PET), that is used to make products such as food cartons and drink bottles. A launch is expected in the first half of the year.

The North East Accelerator Fund, which is managed by Newcastle-based Northstar Ventures, and the Waste & Resources Action Programme’s Accelerating Growth Fund, led the fundraising. Shareholders also committed private finance to the venture.

The business aims to have a first-year turnover of between £5 million and £6 million as supermarkets and food companies continue to pursue green targets, according to a statement from the fund.

Re Pet managing director John Forrest says as much as three quarters of the investment has been used to buy a machine that produces the sheeting. He adds that the business expects to be making 100 tonnes of material each week.

Todd Cardy

Todd Cardy

Todd was Editor of between 2010 and 2011 as well as being responsible for publishing our digital and printed magazines focusing on private equity and venture capital.

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Early Stage Funding