Eco Investor December 2015

Unlisted Companies

Plastics Recycler Raises $0.5 Million

Plastics recycler Newtecpoly Pty Ltd has raised $500,000 of seed capital from a strategic investor who will join the board and management team.

Tauro Capital Partners, which is assisting with the capital raising and introduced the investor, said the investment was at a valuation attractive to the founders and the deal is a big win for the company. Tauro managing director Simon Ward said the investor has decades of relevant management experience. He is a sophisticated investor and businessman whose career has been in manufacturing and operations including in recycling.

The Newtecpoly board was referred to Tauro Capital by a shareholder, Greg Patterson, and securing the value adding cornerstone investor solved not only a financial but also a human capital resource gap. The investment sets the business up for expansion.

Newtecpoly processes plastics from ewaste into its eWood range of products, and it is also commercializing a technology called PolyWaste that can cost effectively transform low-cost used plastics including co-mingled and slightly contaminated plastics into a homogeneous substance that can be extruded into high-quality and affordable plastic products.

Newtecpoly is an early revenue enterprise, and the new money will allow it to greatly increase production at its Moama plant on the border of NSW and Victoria, further develop its eWoods range of products, and begin the process of locating and commissioning a second plant.

General manager and director Colin Barker said the plant is currently operating one line that uses plastic from ewaste to make raised garden beds, decking and posts. It is looking to increase the supply of feedstock to increase production and to increase sales through marketing.

A raised garden bed made from Newtecpoly’s recycled plastics.

The plan is for a second production line to utilize the polywaste technology and a third line, which would be a second polywaste line, would mould larger products such as shipping pallets and vineyard posts.

Newtecpoly featured in the April 2015 edition of Eco Investor when it was aiming to raise $1,995,500 from sophisticated investors. It is still aiming to raise the balance. Mr Barker said the additional capital and the increased production and new products it will bring will assist Newtecpoly in its aim to become cash neutral.

Search Eco Investor