SIMON BAIN

Jutexpo, the maker of reusable bags, has expanded into new premises at Lanarkshire thanks to a growth in business since the introduction of the Scottish plastic bag levy.

The company designs, manufactures and prints jute bags for supermarkets and charities across the UK, and has sold over 50million to date to clients such as Tesco, Sainsbury’s, Dobbie’s, and the Woodland Trust.

It will move into managed workspace at the UK Steel Enterprise business centre in Bellshill Park, following a big rise in demand over the past nine months. Scottish shoppers have had to pay a 5p fee for a throwaway bag since last October, prompting a drop in usage of almost two-thirds.

Environmental organisation WRAP said last week that that bag usage dropped to 64.4 million in the final three months of 2014, compared with 193.5m in the same period of 2013. Previously, people in Scotland used more than 800m new single-use bags every year - more per head of population than anywhere else in the UK.

Wales and Northern Ireland were first to introduce the plastic bag levy and England will follow suit later this year, but only in larger stores.

Jutexpo says that with bespoke branding, each bag creates promotional opportunities over its expected three to four year lifespan, rivalling traditional advertising on both cost and reach.

Sam Turner, compliance director at Jutexpo, said: “We have seen a significant uplift in demand due to the new bag charge as it offers Scottish companies a great opportunity to boost their green initiatives and reduce the CO2 plastic carrier production creates.”

He said the short term lease offered by UKSE was invaluable for start-ups, with the flexibility around contracts and growth. “Jutexpo will stay here indefinitely and as the company continues to grow, we look forward to moving into a bigger office on the premises.”

Anne Clyde, regional manager for Scotland at UKSE, said: “Jutexpo saw an opportunity in the market and grabbed it with both hands. We look forward to watching them continue to grow."