Tuesday, September 16, 2014

News: Exciting opportunity for MGB Plastics

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Rotherham-based manufacturer, MGB Plastics could grow into the leading plastic recycling container business in the UK after its Irish parent company acquired Yorkshire firm, Straight plc.

MGB Plastics is the UK's leading manufacturer of wheeled bins and its Barbot Hall facility has been expanded a number of times and now has the manufacturing capacity of 1.5 million wheeled bins per annum.

Leeds-based Straight has its manufacturing facility in Hull and specialises in kerbside recycling solutions for organic waste and dry recyclables plus containers for hazardous waste and workplace recyclables.

A deal was recently concluded that saw Dublin-based One 51 plc, the owner of MGB, acquire Straight plc for £10.7m.

In its first interim financial results since concluding the deal, Alan Walsh, group chief executive of One51 plc, said: "Our businesses performed strongly in the first half of the year. Since the AGM in May, we have undertaken a capital raising exercise which saw strong demand from existing and new investors.

"We have also recently completed the acquisition of Straight plc which, when integrated with our MGB business, will present us with an exciting opportunity to become the leading plastic recycling container business in the UK and to expand into export markets."

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Straight is being integrated with MGB. Customers include local authorities, purchasing and recycling organisations and utilities. Straight plc also works with private waste management companies, corporate businesses, facilities management companies, the health care sector and educational facilities.

Both manufacturers recently secured multi-million pound contracts from Birmingham City Council as part of the largest roll-out of bins ever seen in Western Europe. MGB will supply 350,000 bins for general household waste and 380,000 bins for recyclable waste, whilst Straight is supplying 350,000 caddies that will be inserted into the recycling bins, for the collection of paper.

Turnover at Straight was £26.1m last year. Turnover on a like-for-like basis for One51's plastics division was £81.5m in 2013.

One 51 reported pre tax profits before exceptional items of €3.6m for the first half of this year, has reduced its debts and secured additional banking facilities.

One51 plc website

Images: MGB Plastics

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