Campaign blames PSL problems on quality

On Friday (February 3), letsrecycle reported that the future of the Welsh plant, believed to be the largest capacity PET reprocessing plant in the UK, was uncertain as the company running the facility had been placed into administration (see letsrecycle.com story).

Interested parties have until tonight (February 6) to approach the administrators, Begbies Traynor of Cardiff, with a bid for the ailing business.

Collection quality

Andy Moore, coordinator of the Campaign for Real Recycling, of which Plastics Sorting Ltd is a key supporter, said that economic problems had been a factor, but a tendency for recycling collections in the UK to contain mixed plastics had been the primary reason for the company’s problems. The CRR is broadly opposed to the use of materials recycling facilities – its chair is Mal Williams, chair of Welsh social enterprise group Cylch, who is also chief executive officer of Plastics Sorting Ltd.

‘PSL is another casualty of the economic recession, but it has also been damaged by the lack of material quality resulting from many recycling collections in the UK’ – Andy Moore, Campaign for Real Recycling

Mr Moore said: “PSL is another casualty of the economic recession, but it has also been damaged by the lack of material quality resulting from many recycling collections in the UK, especially as collectors add a wider range of mixed plastics to the items they collect. The upshot is that poor quality, multi-polymer plastic is collected into a limited domestic market and is typically exported to the Far East, which is of less benefit to the UK economy and job creation.

“This is yet another reason why we are maintaining our vigilance as the government re-transposes the revised EU Waste Framework Directive. We hope that Defra will recognise the importance of supporting the separate collection of dry recyclables, including separate plastics, as this situation illustrates how UK jobs can be affected.”

Charity

The Welsh facility, hailed as a landmark investment when it was opened in April 2010 is understood to have received grants of £1.3 million from the then Welsh Assembly Government. It also received a loan of £625,000 from the Kent-based Charity Bank. It is unclear whether this was actually incorporated into the £1.3 million figure or is a separate sum neither the Welsh Government nor the Charity Bank would comment beyond wishing the administrators success in their task.

The Charity Bank recorded the loan as being to Plastics Sorting and said The organisation recycles household plastics, which are sold back to the plastics industry. A 625,000 loan helped purchase recycling processing equipment and covered costs for the first year.

Not-for-profit

A spokesman for the Charity Bank said it did not lend to private sector limited companies which were aiming to make a profit and so the loan to Plastics Sorting would be because it was a not-for-profit company.

The Bank also has other interests in Wales with a link to Cylcn where Mal Williams is chief executive. The Charity Bank, on its website, explains that the Cylch Investment Programme is run by Charity Bank on behalf of Cylch and provides financial and other support, to enable Cylch members to improve their financial sustainability.