Metal & Waste Recycling has benefited from a multi-million pound cash injection after linking up with Barclays Private Equity.
The undisclosed sum will be used to support future growth and further acquisitions.
Barclays will take a stake in Metal & Waste Recycling, which has a turnover in excess of £100 million.
The privately-owned firm employs more than 300 people processing both ferrous and non-ferrous scrap metal, providing feed for steel mills and foundries in the UK and abroad.
Last year it bought two companies, and is now poised to embark on an acquisitive spree. Andrew Murtagh, the director of Barclays Private Equity based in Birmingham who led the transaction, said: "As world demand for commodities such as steel continues unabated, there will be an increased focus on the processing of scrap to feed a buoyant steel production market.
"Metal & Waste Recy-cling is in a position to grow through expansion of its existing operations and further acquisitions as the industry continues to consolidate."
Gary Mann, managing director of the group, said: "Scrap demand is forecast to increase dramatically over the medium term and Metal & Waste Recycling is in a strong position to grow on the back of this positive market environment.
"The investment we have received from Barclays Private Equity will enable us to continue our capital investment and acquisition programme and expand the services that we offer our customers."
The investment was totally funded and advised from Birmingham. KPMG and DLA acted for Barclays Private Equity whilst Hammonds and Gateley Wareing advised the company's shareholders.