Closed Loop expansion to create UK’s most sophisticated plastics purification plant
Closed Loop Recycling has announced £12m expansion plans which will double the current capacity of its Dagenham plant to 60,000 tonnes, creating the most advanced plastics purification facility in the UK.
As a result of a joint agreement with the London Thames Gateway Development Corporation (LTGDC), Closed Loop Recycling will purchase an additional three acres adjacent to its existing site on the London Sustainable Industries Park (SIP) at Dagenham to build a brand new factory extension, in order to realise its ambitious growth plans and meet demand for recycled food grade products. The expansion will support ambitious plans for partner brands, such as Britvic who are using the output of the factory for Drench water bottles.
Closed Loop Recycling has been at the forefront of the UK plastic recycling industry, the first in the world to recycle both PET and HDPE plastic bottles into food grade material for food and drink packaging. The company has gone from almost zero to £60 million in just five years and this new £12m expansion will further enable the company take real action to support Britain’s challenging waste stream.
Construction on the site is likely to commence in autumn 2011 and when finished will result in increased food-grade HDPE output, and improved sorting facilities. It will also create an additional 50 low carbon jobs at the site.
The London SIP is the centre piece of the Mayor of London’s new Green Enterprise District designed to be the UK’s largest concentration of environmental industries and technology companies. The district will attract up to £140bn of investment and create 6,000 jobs. Its development has already prompted German engineering firm Siemens to locate its £30 million European sustainability pavilion in east London which will open in March 2012.
Chris Dow, managing director of Closed Loop Recycling comments:
“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. In addition to our wide range of customers such as Marks & Spencer, Britvic, Nampak and Solo Cup Europe we have fantastic support from our waste partners such as Veolia and Shanks.
“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. Hence the need for us to expand our operations, to help the industry meet those demands. In addition, the expanded facility will take the equivalent of over 23,000 cars off the road in carbon savings”.
Business Minister Mark Prisk MP said: “If we are going to succeed in rebalancing our economy it is vital that we take advantage of emerging business opportunities, such as low carbon products and services.
“I welcome the news that Closed Loop Recycling will double the size of its plant and create 50 advanced manufacturing jobs in East London. This is a good example of how we can create sustainable economic growth through the green economy.”
Mark Bradbury, deputy director of development for the London Thames Gateway Development Corporation added: “As the first occupier of the London Sustainable Industries Park Closed Loop Recycling has always been an important part of the project and a great supporter of our vision. We are therefore delighted that just two years after their opening we’ve now agreed terms for Phase 2 of the development.”
Closed Loop Recycling’s Dagenham plant has been operating since December 2008. 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. The company is also continuing with its plans to open a second food-grade facility on Deeside, North Wales. 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.
