Buyer found for Welsh bottle recycling plant

A buyer has been found for the Plastics Sorting Limited recycling plant in south Wales, four months after it was forced to close after its owners went into administration.

Viridis Plastics UK Ltd, a UK offshoot of Viridis Plastics Ltd based in Cork, Ireland, has bought the facility with financial backing from the Welsh Government. The Welsh government also supplied grants totalling 1.3 million for the development of the facility in 2010.

Gregg Twomey, Viridis Plastics Groups managing director, said: We have committed to a major long term investment in this project and support from the Welsh government has been pivotal in getting it off the ground.

The Blackwood facility is the only recycling facility of its type in Wales and the largest in the West of the UK. It provides us with the opportunity to become the industry leaders in the development of recycled PET.

We have some exciting and ambitious plans in the pipeline and want to grow the business in Wales. Our medium term plan includes establishing a sorting facility in the South Wales valleys with the potential to create up to eighty jobs over the next three years.

The facility scheduled to be running from June and Viridis has said that it has begun recruiting staff for the plant.

Sorting, washing and chipping of waste plastic bottles into PET flake is carried out at the 91,500 sq ft plant, based on the Blackwood Business Park, Pontllanfraith, near Caerphilly.

Support

Commenting on the deal, Welsh Business Minister Edwina Hart, said: I am pleased the Welsh Government is supporting Viridis Plastics with repayable business finance to ensure that the Blackwood facility achieves its full potential and becomes a leader in the sector.

By supporting this acquisition it provides an opportunity to create a sustainable business with potential for growth that brings economic benefits and jobs to Wales.

The company operates in the energy and environment sector, one of the Welsh Governments priority sectors with potential for high growth and I am pleased to hear of their longer term proposals for the business.

Operations at PSL ceased when the company was placed into administration in February (see letsrecycle.com story), and all 30 of its staff were made redundant.

Difficulties

Reasons for the difficulties at PSL are still not clear although material quality is thought to have been a factor, as well as the uncertain future of Signode of Swansea, one of the companys main customers. Viridis has said that it will be exporting rPET produced at the Blackwood site to France, Germany and Ireland.

As well as the 1.3 million grant from the Welsh government, PSL also received 625,000 from the Kent-based Charity Bank to develop the facility. Upon opening in 2010 it was hailed as a landmark investment and was at one time the largest sorting facility for PET in the UK.

David Hill, partner at PSLs administrators Begbies Traynor, said: We are pleased to have achieved a sale which will hopefully maintain the operations of an important recycling facility. We had a lot of interest in acquiring the assets and wish Viridis the very best in seeking to offer the plant a new future.