UK's Closed Loop Recycling sold

United Kingdom-based plastics recycling company Closed Loop Recycling, based in Dagenham, U.K., has been sold to the Dubai-based investment company Euro Cap. With the sale, the plastics recycling company’s new owners, as well as the management of the plastics firm, will seek the support from dairies and retailers for the Dairy Road Map, which the parties are hoping will improve the market outlook for the recycled HDPE plastics the company has targeted.

Because of exceptionally challenging markets for scrap plastics, the company, the largest recycler of HDPE plastics in the U.K., had recently entered into Administration.

Following the acquisition of Closed Loop, Euro Capital says that it has pledged an ongoing investment program to support the business. Chris Dow, who was named CEO of the new company, says, “We are delighted that Euro Cap has come on board. The number one priority for us and our investors is to continue to support the Dairy Road Map in the U.K. In the last 8 weeks, the industry has shown real commitment to recycled HDPE content. This deal offers the potential for the supply chain to meet this obligation of 30 percent recycled content, but this will only happen if the retailers enforce this through the whole of the supply chain.”

As part of the sale, Closed Loop Recycling will be renamed Euro Closed Loop Recycling. The sale has taken the form of a pre-pack administration deal and will protect all jobs at the Dagenham, U.K. plant.

Dow continues, “The sale ensures the continual supply of recycled content for the milk bottle market in the U.K. to achieve the goals of the Dairy Roadmap.”