ENVIRONMENTAL managementcompany Graphite Resources has secured financial backing to develop the region's first multi-million pound recycling facility that uses steam.

Graphite, of Newcastle, has secured an undisclosed amount from Allied Irish Bank to develop the plant at Derwenthaugh, Gateshead, which will create 60 jobs.

The facility will use steam to sanitise and separate waste and act as an alternative to incinerators and landfill sites.

Graphite was granted planning permission last year and, after securing credit facilities from the bank, hopes to develop the site and win long-term contracts from local authorities.

Director William Thompson said: "What we are talking here is a sustainable, long-term solution to recycling 80 per cent of household waste safely, efficiently and without damaging the environment. Landfill sites are reaching capacity and incineration methods are not the most publicly acceptable. Effective waste management will play a huge role in our future lives and those of our children and grandchildren."

The Derwenthaugh site will be able to handle more than 300 tonnes of unsorted waste every year.

Waste will be placed into a drum and pressurised steam, at temperatures of up to 160 degrees centigrade, will be used. Refuse will then be sent to a segregation area, where the materials will be separated.

"Graphite's project is a sound investment, which we are confident will pay dividends," said Rowan Duggan, from Allied Irish Bank.

"Steam treatment is every bit as progressive and productive as current recycling methods being adopted in this region."