Electronics and durable goods plastics recycler MBA Polymers Inc. has received $20 million in venture capital funding that the firm said will go into building additional factories in Europe and Asia.
The funding from venture capital firms Doughty Hanson Technology Ventures and Benchmark Capital is likely to go toward building another plant in Asia and another in Europe in the next 18 months, said Chief Executive Officer Mike Biddle in a May 25 telephone interview. Final decisions have not been made, he said.
Richmond, Calif.-based MBA recycles waste plastics from household appliances, electronics, automobiles and other durable products, and has joint venture factories in Guangzhou, China, and Kematan, Austria.
Benchmark has about $3.5 billion under management, while London- and Munich-based Doughty Hanson describes itself as an early-stage venture capital firm, focused on Europe, with about $272 million under management. Each company will take one seat on MBA's board.
``We believe that MBA has the potential to scale rapidly in a sector that is increasingly important to today's society,'' said George Coelho, a general partner in Benchmark's London office.
MBA President and Chief Financial Officer Richard McCombs said the company's investors are interested in building the firm beyond the two existing factories and the two on the drawing board.
``The opportunity we have in front of MBA is huge right now,'' he said.
MBA said its proprietary process allows it to separate and recycle plastic from those durable goods in a more energy-efficient and cheaper way than making virgin plastics. Some electronics companies in particular have been reluctant to use much recycled resin because there are challenges in getting consistent supplies, but McCombs said MBA believes its process can provide consistent quality.
Each of MBA's two existing plants has a capacity of about 88 million pounds a year.