Veolia ‘committed’ to Closed Loop bottle plant

Details of the talks are yet to emerge but Veolia has confirmed an interest in the plant saying it is “committed” to supporting the business.

Euro Capital took ownership of the Closed Loop site in May, after the original owners of the facility had been placed into administration with the business having posted losses due to challenging trading conditions.

Early last week Euro Capital shareholder Afzal Majid said that the plant was likely to cease production as it had no longer become sustainable to continue operations. However, the facility was still operational last Friday.

One suitor is likely to be waste and resources firm Veolia, which is among the biggest suppliers of material to Euro Closed Loop. Veolia and the original Closed Loop business signed a five year agreement in 2012 for the supply of 100,000 tonnes of plastic bottles, many of which come via Veolia’s plastics recovery facility in Rainham, Kent (see letsrecycle.com story).

Veolia

Speaking at the time of the signing of the Veolia contract, Closed Loop’s then chief executive Chris Dow said: “We have enjoyed a strong relationship with Veolia since our plant’s inception and they are already our largest supplier of bottles.”

Takeover of the Dagenham facility would also align with Veolia’s ‘circular economy’ focussed strategy to reposition itself from a waste handling firm to a provider of resources and products.

And, asked whether the waste and resources giant had any interest in the purchase of Closed Loop, the company’s technical director, Richard Kirkman, told letsrecycle.com: “We have supported Closed Loop financially and with advice for eight years since conception and we remain committed to support the business as a going concern, because closing the loop on recyclables is critical to long term success.”

Mr Kirkman added: “We believe that an experienced operator can make a success of this type of facility if the downstream supply chain does want the recycled content in their products.”

Chris Dow

It is unclear whether Closed Loop founder Chris Dow remains a part of the business. The Australian remained on as chief executive after having overseen the sale of the company to Euro Capital in May.

However, it is understood that he is likely to depart the business shortly and may return to Australia.

His position at Closed Loop appears to have altered throughout the course of last week, after having issued a statement on Monday that he was working hard to secure the future of the company. It is now understood that he is not involved in discussions over the future of the business.