The development will begin construction on the former Cleveland Bridge and Engineering Works site on Yarm Road, which has remained dormant since 2021.
Planning approval has been given for Endolys to install 12 advanced pyrolysis units at the site, following initial announcement for the plant in October 2025.
The company has already secured £60 million in funding for the first phase of the project, which will see the installation of an initial six units.
Operations are expected to begin before the end of the year.
Mark Leggett, Chief Executive Officer of Endolys, said: “Planning approval is a major milestone for Endolys and for advanced recycling in the UK.”
“We’re creating skilled jobs, regenerating an iconic industrial site and delivering infrastructure that will recycle plastic film that currently has few viable recycling options.
“This project demonstrates that the UK can lead the transition to a more circular plastics economy.”
Facility to process 120k tonnes of plastic film
Subject to receiving an Environmental Permit from the Environment Agency, the completed facility is expected to be capable to processing up to 120,000 tonnes of plastic film annually.
Endolys said that this would produce around 80,000 tonnes of recycled pyrolysis oil each year for use by European refineries and petrochemical manufacturers.
The project is expected to create up to 120 jobs at the Yarm Road facility, including engineering, technical and plant operation roles.
Engineering and project management services for the development are being provided by Middlesbrough-based Intelect.
Endolys has also secured an offtake agreement with a global oil trading company covering 100% of the plant’s production.
The pyrolysis oil will be stored at Navigator Terminals’ Seal Sands site before being exported into the European petrochemical market.
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