Veolia UK has acquired the former Euro Closed Loop Recycling site in Dagenham, for an undisclosed fee – including its manufacturing assets, which its says will “unlock the complete supply chain for manufacturing plastic bottles from recycled material”.
Veolia will now be able to offer collection of raw feedstock (waste plastic bottles) through all the recycling steps, and back to food grade pellets ready to be blown into new plastic milk bottles.
The move will boost the UK’s domestic recycling capability, create 30 permanent jobs and enable Veolia to make and sell a high value product from the 200m plastic milk bottles it collects annually.
New London Mayor Sadiq Khan – “This plant will be able to recycle all of the capital’s empty milk bottles – a mountain of waste that would otherwise have been sent to landfill. This is good news for London and good news for the environment.”
The plant will produce around 10,000 tonnes of high quality food grade HDPE pellets annually. Recycling this material requires 75% less energy to make a plastic bottle than using ‘virgin’ materials, and this equates to conserving enough energy to power around 20,000 homes and saving 10,000 tpa of carbon emissions.
Currently around 13bn soft drinks, water and milk bottles are discarded each year and globally the environmental costs are on the increase. By recycling bottles to produce new food-grade quality plastic, Veolia will make plastic more sustainable and maintain lower costs for local councils.
Estelle Brachlianoff, senior executive vice president Veolia UK and Ireland, said: “We are very interested to collaborate in this space since co-operation with the manufacturing sector, the people actually making things from recovered materials, is essential in order to be successful for the long term.
“This is a great opportunity to work in tandem with our Rainham plastic recycling facility to turn the high density polyethylene (HDPE) milk bottles back into bottles and we are excited at mastering the full supply chain by moving into this type of manufacturing. This shows once again Veolia’s commitment to investment in the UK.”
New London Mayor Sadiq Khan praised the investment. “I am determined to redouble efforts to increase the amount London recycles so I am delighted that Veolia has purchased this important facility. This plant will be able to recycle all of the capital’s empty milk bottles – a mountain of waste that would otherwise have been sent to landfill. This is good news for London and good news for the environment.”
Closed Loop
Euro Closed Loop Recycling was placed into administration back in May, just 12 months after the company was acquired in a pre-pack administration agreement.
A slump in oil prices last year pushed Closed Loop Recycling close to administration, with it calling for financial support from the industry and government.
As a result, the Dagenham Closed Loop plastic milk bottle recycling facility, the UK’s largest recycler of plastic milk bottles, was sold to Dubai-based investment company, Euro Capital, to operate under the new name of Euro Closed Loop Recycling.
The sale saw the new owners immediately seeking support from the dairies and retailers for the Dairy Road Map and Euro Capital pledged an ongoing investment programme to support the business.
Following the sale, the new owners said the plant was losing around £300,000 per month, after which the company began seeking a potential new buyer for the plant.
Inevitably, however, the plant was shut down and staff were laid off.
Jason Elliott and Craig Johns of Manchester-based insolvency firm Cowgill Holloway Business Recovery LLP have been appointed as administrators.
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