Circular11 raises £2.4M to scale plastic-to-lumber manufacturing
What's the deal? Dorset-based Circular11Dealroom has a profile for this one. Try Dealroom → has secured £2.4M in equity funding to scale its manufacturing technology that converts low-quality plastic waste into composite lumber — an alternative to timber for the construction sector. The startup plans to recycle an estimated 10,000 tonnes of plastic over the next two years.
The round was led by Vectr7 Investment PartnersDealroom has a profile for this one. Try Dealroom →, a climate impact investor, with The FSE GroupDealroom has a profile for this one. Try Dealroom → as co-lead. The FSE Group invested £630,000 from the British Business Bank's South West Investment Fund. Oxford Innovation Network, The FSE Investor Network, and other private investors also participated, alongside an InnovateUK grant.
Why now? Global timber demand is set to outstrip slow-growing supply threefold in coming decades. At the same time, bans on traditional timber preservatives are shortening wood lifespans, creating urgent demand for alternative materials.
Most plastics end up incinerated or in landfill because recyclers can't separate them back to sufficient purity for standard manufacturing. Circular11's proprietary technology adapts its production lines to handle this variation, turning otherwise unusable plastic into composite lumber with longer lifespans and lower maintenance costs.
"We believe that every tonne of plastic that gets incinerated is a missed opportunity to deliver low-carbon materials to a construction sector that desperately needs affordable and long-lasting assets," said Benjamin Gibbons, chief executive officer of Circular11.
What could go wrong? Composite lumber faces stiff competition from both traditional timber and other alternative materials. Scaling manufacturing while maintaining product quality from inconsistent waste feedstock is a significant engineering challenge. The company will also need to build trust with a construction industry that can be slow to adopt new materials.
The signal: Circular11 sits at the intersection of two pressures bearing down on construction: a timber supply gap projected to widen threefold and tightening regulations on plastic incineration. For Vectr7 Investment Partners, a specialist climate impact fund, backing an early-growth company that converts an environmental liability into a structural material is a bet that circular-economy businesses can scale beyond niche applications. The co-investment from the British Business Bank's South West Investment Fund — which previously supported Circular11 through its Start Up Loans programme — suggests the public sector sees composite lumber not just as a sustainability play but as a commercially viable manufacturing opportunity for the region.
Source: ukbaa.org.uk
