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Green manufacturing start-up hailed by Yorkshire business community

22 June 2011

Today sees the launch of R3 Products a new, green, manufacturing start-up chaired by Kevin Parkin, the former DavyMarkham boss, and led by directors Doug Anderson and Paul Sapsford.

R3 will volume manufacture products for the civil engineering and construction markets from mixed waste plastic. In a funding climate where many investors are risk averse when it comes to capital-intensive start-ups, R3 is testament to the perseverance and belief of its founders and demonstrates, despite the barriers, it is still possible for innovative manufacturing businesses to attract backers and present new growth opportunities for the region.

The start-up expects to turnover £3 million and employ 20 people in its first year with full production due to start in a matter of months at a site in South Yorkshire.

By combining three proven moulding technologies in one efficient plant, R3 will use unwanted mixed waste plastic to develop competitively priced, longer-lasting alternatives to existing products. It will also provide additional benefits to customers who increasingly need to meet environmental targets and other 'green' legislative requirements.

Kevin Parkin, non-executive Chairman of R3, said:

"I am delighted that the deal has at long last been secured and that we managed to have such good support throughout the transaction from our personal advisors at Nabarro, PWC, Barber Harrison & Platt and HSBC.

"Our production will be using mixed waste plastic as a raw material but its main drivers are the manufacture of high quality construction products produced on time with a priority being given to health and safety throughout.

"We are delighted to have located the business in the Sheffield City Region and will be proud to be manufacturing under a "Made in Sheffield" name once the production process is proven."

Ben Hendry, corporate partner at law firm Nabarro LLP, said:

"With a strong management team, an innovative, environmentally-focused business concept built on the manufacturing strengths of the region, I have no doubt that R3 will be a tremendous success. Nabarro has provided a full set of legal services to support the company's launch from our corporate, commercial contracts, real estate and IP practices here in Sheffield."

Joanna Allen, assurance & transaction services director, PwC Sheffield said:-

“PwC has been delighted to work with the directors of R3 in recent months, supporting them as they progress their vision to reality. My colleagues Lucy Bradwell and Gordon Singer provided advice and support in relation to securing the tax position, whilst I focussed on leading our team providing financial, commercial and operational due diligence. The tenacity and drive of the R3 directors have brought them to this exciting point. It is great to have such exciting start up companies here in South Yorkshire, operating in the sustainability space and we wish them every success in their ambitions to grow the business.”

Stephen Ingram, corporate finance partner at leading independent accountancy firm Barber Harrison & Platt, commented:

"A huge amount of time and effort has been involved in getting this business in to a position where it can start trading. In these challenging economic times R3 is an excellent demonstration that a quality management team with a good business opportunity can, with determination, still raise the finance needed to get a substantial start-up business off the ground."

Lee Bloodworth, HSBC’s International Commercial Manager in South Yorkshire said:

"HSBC is committed to supporting business in South Yorkshire and the support we are providing to R3 is a tangible example of this. We very much look forward to working with a management team that has exciting plans for the future in a sector which has great growth potential. R3’s focus on sustainability is also very closely aligned to HSBC’s own values, the bank has a long standing commitment to the environment and was the world's first major bank to become carbon neutral. This, together with the company's international aspirations, make us their ideal banking partner."

For further information, please contact:

Kevin Parkin
Non-Executive Chairman
R3 Products
KevParkin@aol.com
T: 07775 953259		    Alex Bellinger
PR & E-Communications Manager
a.bellinger@nabarro.com
T +44 (0)20 7524 6391