Environmental Recycling Technologies (ERT) has signed an agreement with Metallis Recycling (MRL) to form a 50-50 joint venture in the UK.
ERT will give the JV exclusive rights to manufacture flat sheet using its proprietary powder impression moulding (PIM) process.
The JV will pay ERT a knowledge transfer and licence fee of 1m, and royalty for each product sold.
Flat sheet made of PIM is used as an alternative to imported plywood, or to virgin plastic panels.
The patented PIM processes mixed plastic waste into granules, without the need for the conventional polymer cleaning and segregation.
The granules are turned into reusable material, which is used as filler between two skins. The plastic products made out of the granules are again recyclable.
ERT provides licences for PIM for the manufacture of barge covers, shower trays, and flat sheet in the US, Europe and UK.
James Marine unit Brownwater Plastics holds an exclusive license to manufacture barge covers and other marine products using PIM, in the US.
Contour Showers holds an exclusive licence to manufacture Eco-dec shower tray in Europe.
ERT says the new JV is in line with its business plan to form 'strong strategic cooperation with like-minded companies'.
The partners have been working on the agreement for a year.
ERT managing director Lee Clayton said: "We are delighted to have established a joint venture with Metallis Recycling to reintroduce flat sheet PIM board to the UK market.
"We have been looking for a partner who could take on the manufacture and supply of this sought after product and have actively decided upon a closer participation with our new flagship UK manufacturer so that we can contribute more actively to the business. "
MRL will grant the joint venture an exclusive UK licence for its plastics processing technology, for a fee of £1m.
Additionally, the company will provide a loan of up to £1m and seek new investors for the expansion of the facility.
MRL managing director Tom Bird said: "This is the first major step for Mettalis with regard to our forward strategy of moving to diversify our business into innovative recycling solutions.
"This joint venture will complement another bespoke initiative which will see Mettalis at the forefront of metals and plastics recycling."
