Contract is expected to deliver 100,000 metric tons of PET and HDPE to plastics recycling firm.
Veolia Environmental Services has awarded a contract to the U.K.-based plastics recycling company Closed Loop Recycling. The contract could result in more than 100,000 metric tons per year of PET and HDPE being delivered to Closed Loop’s Dagenham, U.K., from Veolia’s nearby facility.
The decision follows Veolia’s strategic and long-term review of its supply chain and a £5 million investment in its sorting facility at Rainham, Essex, U.K. Veolia notes that the deal will strengthen its plastic recycling industry in the U.K, which has grown in value from almost zero to £150 million in the last six years.
Closed Loop Recycling’s plant, operational since December 2008, currently reprocesses more than 4 million bottles per day. The company also is looking to install new equipment and expand its operations over the next 12 months.
Closed Loop says it is the first company in the world to recycle both PET and HDPE plastic bottles into food grade material for new food and drink packaging.
Gavin Graveson, Veolia Environmental Services’ executive director, treatment, says, “Working in partnership with Closed Loop we have supported the domestic plastic recycling market, and the new contract will build on that success. Plastic collection, sorting and recycling is now firmly embedded in the U.K.’s waste strategy, as a direct result of the willingness of both companies to invest in the sector.”
Chris Dow, CEO of Closed Loop Recycling, adds, "We have enjoyed a strong relationship with Veolia since our plant’s inception and they are already our largest supplier of bottles. We are delighted that our two companies have been able to confirm this new agreement, which will help take Closed Loop Recycling to new heights.
“As one of Europe’s leading recycling companies, Veolia has been central to providing high quality recycled plastic feed stock to the industry. The five-year contract shows a new stage in the development of the plastic recycling industry, with more demand than ever for high quality, domestically processed recycled PET and recycled HDPE here in the U.K. for leading brands such as M&S and Britvic,” Graveson adds.