A METHOD of producing bio-degradable, non-toxic plastics which can be put to a wide range of uses and will dissolve in water has been developed by Environmental Polymers Group, Warrington.

It could transform the way we dispose of plastics in the future, and also help companies cope with environmental legislation.

The new plastics can be used for hospital laundry bags that will dissolve in the washing machine, labels which will wash away under a tap, medical gloves, tubing, and other products that will dissolve in the sterilisation process; municipal waste bags and films that will break down in a slurry pit and many other products.

There is also a range of opportunities in industrial processes such as injection moulding, fibre spinning and foam.

A spokesman for the company said that as far as Environmental Polymers' directors were aware, no other company had been able to reproduce the process.

It is based on a resin known as polyvinyl alcohol (PVOH), which bio-degrades at pre-determined temperatures. Environmental Polymers is the first company to melt process PVOH and make pellets out of it.

The company, which has its headquarters in Woolston, employs 25 people between Woolston and other premises in Irlam.

Bonnie Hadfield, communications and marketing executive, said that new jobs would be created in the future as a result of the development.

The company hopes to raise between £3 million and £6 million in new shares to fund further work, moving from research and development into commercial manufacturing.

It has teamed up with three joint venture partners, two in Israel and one in Wigan, which will work on developing specific applications of the new product.

Phil Smith, chief executive of Environmental Polymers said he was delighted with the response from shareholders."There are many promising opportunities for Environmental Polymers Group both in the UK and overseas. With the new funds at our disposal, I am confident that the group will be able to make an impact on the plastics industry."