Recycling specialist Gap Ice creates 20 jobs after securing £ 250,000 investment
‘Zero landfill’ Tyneside recycling company is creating new jobs with six-figure investment.
Gap Ice operates a modern refrigerator recycling plant at its headquarters in Felling and already processes more than 10,000 devices each week, with almost all components removed for reuse.
After working with regional fund management firm NEL Fund Managers, she secured a Â£ 250,000 investment from the North East Growth Capital Fund Loan Fund through the Coronavirus Business Interruption Loan Scheme.
Read more:Fund managers invest Â£ 6.6million in northeast
Today, Gap Ice is expanding its site facilities to cover more than five acres, paving the way for the expansion of its processing of small household appliances.
Up to 20 new jobs will be created as the company grows, bringing its total workforce to more than 100 people, while the management team aims to increase its turnover by 8 million. pounds sterling to around Â£ 14million.
Gap Ice was referred to NEL Fund Managers by James Clinghan of TBP – Trusted Business Partner Advisors.
The company is part of the Gap group, which was founded in 2005 and encompasses the activities of food waste management, transportation and recycling of electrical waste.
Its objective is to get as close as possible to a âzero landfillâ approach for all its recycling operations and it is also currently studying options for setting up a waste recovery system without pollution.
Gap Ice currently takes refrigerators from retailers in North East and North Yorkshire, as well as South Ireland, and recycles both their physical components and the gases that run them.
Mark Curry, CFO of The Gap Group, said: âManaging the lifespan of household appliances such as refrigerators is a growing priority for manufacturers and retailers, and being able to offer them a near zero-cost solution. in discharge ‘to their needs makes our offering extremely attractive to them.
âTaking this additional space and capacity will allow us to accelerate our growth plans and give us the room for growth that we know we will need in the years to come.
âWe know there are many other opportunities for us to grow our business, both building on what we currently offer and introducing new procedures and services that will fill emerging gaps in the recycling market.
âWe have made many improvements to our business and operational procedures over the past 18 months and wanted to identify an investment option that would allow us to get the most out of them.
David Thomas, Investment Director at NEL Fund Managers, added: âGap Ice has already demonstrated its leadership in this rapidly developing segment of the recycling market and its ambition to do even more will benefit both the performance of the company and the environment around us all. .
âInvestments that bring with them these kinds of environmental benefits are a priority for the North East Fund and we are very pleased to be working with such a visionary company.
James Clinghan, Partner at TBP – Trusted Business Partner in Newcastle, said: âI am delighted to have been able to put together a diverse ABL-backed fundraising program to support the GAP Group team. We called on Leumi ABL and worked in collaboration with NEL on this project. Both have worked tirelessly to help us build a long-term funding program that will support business aspirations for years to come.
âThe project was not without complications, but the highly skilled negotiating team we had on the project helped us overcome some complex obstacles and I cannot thank these people enough.
âIt is a pleasure to work with the Gap Group team and we hope to continue to support them over the next few years. “
The North East Growth Capital Fund has been designed to create around 790 jobs at over 70 regional businesses over the duration of the program and offers unsecured investments of up to Â£ 500,000 to established businesses looking to realize their growth potential.
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