Straight, a recycling group based in Leeds, will begin to manufacture its own kerbside recycling boxes after its acquisition of an injection moulding firm.
Purchased by Dyro Holdings, owner of Powell Plastics based in Hull, for £2.9m, the purchase will see Straight manufacture its own products internally. However, the purchase was incurred by Straight roughly one-third of it in-house.
Dyro, which maintains around 60 staff members, made the bulk of its £10m annual profit selling plastic recycling and waste containers to Straight. The business operates over 20 injection moulding machines and earned £1.12m in profits during 2009.
Chief executive at Straight, Jonathan Straight said that his plans to increase Dyro’s efficiency will include investments into the facility, which will increase the group’s profitability. He added that a business must be as competitive as it can, and he believes that it is time to further adapt the firm’s business model.
Mr Straight continued, saying that the model for Straight was originally based on outsourcing manufacturing, however, he added that since the firm has reached the size it has, it was deemed more appropriate to manufacture themselves.
Dyro, which is based off Hedon Road located in east Hull, is easily accessible and nearby to the Port of Hull, Straight said. The initial payment for the purchase has been funded by Lloyds TSB, and the remainder of the borrowed money is expected to be paid off using cash generated from the acquisition.
In March, Straight also acquired the waste company Helesi’s UK business at a purchase price of £1.65m in cash. The acquisition was made possible when the firm ceased operations at its plant in Bradford last September. In the deal, Straight received Helesi’s UK order book along with the firm’s first branded wheelie bin.
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