£400,000 boost helps aid recycling firm's revival

A Yorkshire recycling business rescued from administration last year is building on a “transformed” operation with a £400,000 funding boost to support expansion into Leeds and create new jobs.

Environmental Construction Materials (ECM) has secured a loan from NPIF II – Mercia Debt Finance, managed by Mercia as part of the Northern Powerhouse Investment Fund II (NPIF II).

Bosses say the investment will support the acquisition and development of a four-acre site at Betteras Hill in Leeds, previously operated by KE Lunness Aggregates, which carried out processing work on ECM’s behalf.

Funding will enable ECM to upgrade plant and equipment, establish its own recycling operation at the site and transfer part of its existing activities from Armthorpe, near Doncaster.

The company has retained three employees at the Leeds site and plans to create further jobs over the coming year, adding to its existing workforce of eight across Armthorpe and its Worksop office.

Jonathan Prutton, managing director at ECM, said: “Philip and I had both spotted the demand for aggregate recycling and when the opportunity arose to buy the business from the administrators, we could see its potential.

“Since then we have worked hard to turn it around and enhance the processing technology.

“Taking on the Leeds site will further enhance its profitability by enabling us to take over the processing work ourselves and improve logistics.

“Ultimately we aim to make ECM the most reliable, high quality aggregate and glass re-processer in the UK.”

ECM specialises in processing aggregates and glass waste from bottle banks, washing materials to remove pollutants and chemicals before supplying recycled products to the construction industry.

The business was acquired from administration in early 2025 by Jonathan and fellow entrepreneur Philip Horsnall, who have since returned it to profitability.

The pair have extensive experience in the construction and materials sectors, having previously owned Leeds-based Moorhead Excavations before its transition to employee ownership three years ago.

Additional finance for the expansion has been provided by Compass Business Finance, secured against the freehold land, plant and equipment.

Ian Whitworth, of Mercia Business Loans, added: “Jonathan and Philip are seasoned entrepreneurs who have transformed the ECM business within a short time.

“We are pleased to help them establish this new operation in Leeds and take the company from strength to strength.”

The £660 million NPIF II fund, operated by British Business Bank, provides loans from £25,000 to £2 million and equity investment up to £5 million to help small and medium-sized businesses.

Sarah Newbould, associate director at the British Business Bank, added: “Through the Northern Powerhouse Investment Fund II, we’re proud to be supporting businesses like ECM as they invest in new facilities, strengthen their operations and create jobs.

“This funding will help ECM expand its recycling capabilities in Leeds, supporting the growth of a business that is helping to provide more sustainable materials for the construction industry while contributing to the wider regional economy.”

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