Veolia extends bottles deal with Closed Loop

Waste management firm Veolia Environmental Services has agreed to supply around 20,000 tonnes of plastic bottles per year to bottle recycler Closed Loop Recycling, as part of a new five year deal between the firms.

Under the terms of the agreement, Closed Loop will take bottles sorted at Veolias newly opened plastics sorting facility in Rainham, Kent.

Closed Loop will then process the bottles at its 35,000 tonne capacity Dagenham facility, where the material will be turned into food grade recycled plastic.

The companies had an existing agreement in place which had around 12 months to run, but it is understood that Veolia was keen to update the deal upon completion of the Rainham facility. The 5 million plant, opened earlier this month, has been designed to sort up to nine different grades of plastics, and has a 50,000 tonne capacity.

Feedstock for the plant comes from nine materials recycling facilities operated by Veolia as well as third parties.

Supplier

Chris Dow, chief executive of Closed Loop Recycling, said: “We have enjoyed a strong relationship with Veolia since our plants 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.

‘Plastic collection, sorting and recycling is now firmly embedded in the UK’s waste strategy, as a direct result of the willingness of both companies to invest in the sector.’

Gavin Graveson, Veolia ES

As one of Europes 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 rPET and rHDPE here in the UK for leading brands such as M&S and Britvic.

Closed Loop Recycling has plans in place to double the capacity of its Dagenham plant to 85,000 tonnes. Work on the site is likely to commence in 2013 and when finished will result in increased food-grade HDPE output and improved sorting facilities.

The 18 million plant began operating in 2008, and processes both polyethylene terephthalate (PET) and high-density polyethylene (HDPE) plastics.

Gavin Graveson, Veolia Environmental Services executive director, treatment said: 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 UKs waste strategy, as a direct result of the willingness of both companies to invest in the sector.