Environmental Recycling Technologies (ERT) has agreed to form a joint venture (JV) with Metallis Recycling (MRL) in the UK.
Both the companies will each own a 50% stake in the JV.
ERT will give the JV exclusive rights to manufacture flat sheet using its proprietary powder impression moulding (PIM) process.
The PIM process converts mixed waste plastics into commercially viable products. It is supposed to be renowned to improve the environmental footprint of businesses by adding new value to mixed plastic waste streams through conversion into products, which in turn, can be recycled at the end of their life.
With exclusive rights to sell PIM flat sheet in the UK market, the JV will pay ERT a knowledge transfer and license fee of £1m, and royalty for each product sold.
ERT managing director Lee Clayton: "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.
"We have spent the last year building a relationship with Mettalis Recycling and have carefully constructed a business plan that benefits our shareholders and our new partner. This announcement is in line with our business plan, which lays out ERT's focus to continue to form strong strategic cooperation with like-minded companies."
MRL will grant the joint venture an exclusive UK license for its plastics processing technology for a fee of £1m.
Additionally, MRL will provide a loan of up to £1m and seek new investors for the expansion of the facility.