rPET and rHDPE manufacturer to double capacity with £12m investment

By Helen Glaberson

- Last updated on GMT

rPET and rHDPE manufacturer to double capacity with £12m investment

Related tags: Closed loop recycling, Sustainability

Closed Loop Recycling has announced a £12m (€14m) expansion plan that the company claims will double the current capacity of its London site to 60,000 tonnes.

The company will purchase an additional three acres adjacent to its existing site on the London Sustainable Industries Park in Dagenham, Greater London to build a factory extension, after reaching an agreement with London Thames Gateway Development Corporation (LTGDC).

The company recycles PET and HDPE plastic bottles into food-grade material for new food and drink packaging. Its current capacity allows the production of 35,000 tonnes of mixed plastic bottles, producing 11,000 tonnes of rPET and 6,000 tonnes of rHDPE per annum.

Construction on the site is likely to begin in autumn 2011 and will result in increased food-grade HDPE output, improved sorting facilities and better economies of scale, in addition to creating 50 low-carbon jobs, the company said.

There will be minimal impact on operations of the existing plant throughout the build phase said Closed Loop Recycling.

Chris Dow, managing director of Closed Loop Recycling (featured right) said: “There is massive demand amongst major brand owners for more sustainable packaging solutions and this expansion further enhances the UK’s fast growing sustainable industry.​”

The expansion will help meet the demand for recycled food-grade products and will support plans for partner brands such as Britvic, Marks & Spencer and Nampak.

“It is the increased demand for rPET and rHDPE from these big brand owners and packaging companies, as well as better collection rates and increased recycling by consumers that is continuing to drive the market for food grade plastic. In addition, the expanded facility will take the equivalent of over 23,000 cars off the road in carbon savings,”​ said Dow.

Focus on London plant

Although the company had previously outlined plans to accumulate £30m (€35m) to invest in a second food-grade facility on Deeside, North Wales a spokesperson for Closed Loop Recycling told FoodProductionDaily.com that the land next to the Dagenham site had suddenly become available and was therefore “too good an opportunity to miss”​.

Plans to develop the 50,000 tonnes-a-year capacity plant at Deeside in North Wales were previously expected to start in early 2011.

The spokesperson said it made more economic sense to invest in the London site at the moment which is why it had become a priority.

Although the Wales expansion still forms part of the company’s expansion plans, she said the company could not currently give any further information to when the site will be developed.

Once completed, this 90,000 square feet facility will process up to 50,000 tonnes of recycled plastic bottles per annum. Further plants are also planned.

Closed Loop Recycling’s Dagenham plant has been operating since December 2008.

Related topics: Processing & Packaging

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