Black Country recycling deal advised out of Birmingham

A BLACK Country carbon recycling business has been acquired by a German firm in an undisclosed deal advised out of Birmingham.

Recycled Carbon Fibre Ltd (RCF) has been bought by German owned ELG, a global leader in the trading and processing of raw materials for the stainless steel industry.  ELG has acquired 100% of the RCF shares.

The deal was led by Gateley’s corporate team, headed by partner Chris Reed.

“The composite materials and carbon recycling sector is an emerging market driven not just by financials but also the demand for manufacturers to have increasingly green manufacturing processes and products in place,” said Mr Reed.  

“The acquisition of this young recycling company will open up further growth opportunities for ELG in this important area.  We have been advising the company since its incorporation and were pleased to be involved in securing the next stage of the business’s development.”

RCF established its Coseley base in 2009. The facility reclaims carbon fibre on a commercial scale and has become one of the market pioneers.  

Manufacturers of carbon composites typically produce scrap levels of up to 40% and the traditional solution is to use landfill or waste incineration.  RCF was the first company of its kind to recycle carbon fibre reinforced plastics, providing a safe means for disposal of this type of waste.  

The company will now operate as ELG Carbon Fibre Ltd, supervised by current managing director, Stephen Line and in co-operation with the RCF management team.

Mr Line said:  “This was an important move for RCF in developing the pioneering business model that we have built and will enable us to expand into global markets where the need to recycle is equally pressing.”

HLW in Sheffield were the legal advisors for ELG.