18th May 2015 07:16
LONDON (Alliance News) - Environmental Recycling Technologies PLC Monday said it has signed heads of terms with Metallis Recycling Ltd to create a joint venture focused on the manufacturing and sale of powder impression moulding flat sheet for the UK.
The joint venture will be split 50:50 between the two companies, with Environmental Recycling to grant the joint venture an exclusive licence for the powder impression moulding technology in the UK in exchange for a knowledge transfer and licence fee payment of GBP1 million.
The company will also receive royalty payments on all products sold by the joint venture.
"We are delighted to have established a joint venture with Metallis Recycling Limited 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," said Managing Director Lee Clayton.
Shares in Environmental Recycling were up 11% to 0.5 pence in early trade, one of the best performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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