Closed Loop Recycling reveals “major expansion”

The firm has already started looking at locations for a second £12 million facility to process 35,000 tonnes of mixed HDPE and PET a year, and expects it could come online by 2009.

The move follows Closed Loop Recycling securing a second undisclosed round of funding from venture capital fund, Foresight, which already invested £4.6 million in the company last year.

Speaking to  last night, Closed Loop managing director Chris Dow said: “We have a plan for five plants in the UK over the next five years. It will be Dagenham first, and the plant we are looking at at the moment will be the second. We anticipate our second plant will be in operation by summer 2009.”

Although the location of Closed Loop's second plastics recycling facility is yet to be decided, it is likely to be located close to large population centres, where there are lots of plastic bottle arisings, in order to reduce its carbon footprint.

Material will be provided by Veolia Environmental Services, who already have an agreement to provide plastic to the Dagenham facility.

Both plants will use technology developed by Coca Cola and Cleanaway Germany
known as “URRC”, for which Closed Loop Recycling have the sole rights in the UK.

Under the process, plastic bottles are shredded and washed. Flakes are then taken through a kiln process of heating which removes very fine layer of the plastic and decontaminates the flakes.

Mr Dow said: “The product is the equivalent of virgin plastic. The product from Dagenham has virtually sold out already and some material from the second plant – that is the nature of the demand for the product from customers such as bottle manufacturers.”

Mr Dow said that with collection rates of plastics increasing in the UK, there was already enough plastic to feed a second plant, and perhaps another facility in the London area in future.

However, he said that Closed Loop would be monitoring collections rates and materials recycling facility infrastructure to ensure there was enough supply for future facilities.

He said: “It is fair to say that London in the not too distant future could do with a second plant, but it is reliant on factors such as collection strategies. Consumption levels are going up in the UK but we still have a very significant no of boroughs yet to provide kerbside plastic collections.”