Plastic recycling firm PSL wins major supply deal

Plastics recycling firm Plastic Sorting Limited has landed a major supply agreement with global plastics and steel strapping manufacturer Signode.

The plastics recycling firm, known as PSL, will supply flake produced at its South Wales plant to Signode, which is attempting to reduce the amount of virgin material it uses in its production process.

At present, Signode uses, what the firm terms, a significant tonnage of plastic flake to create strapping for packaging at its Swansea plant which is situated 50 miles away from PSLs flagship Blackwood plant near Caerphilly.

However, it is understood that Signode has found it difficult to source recovered material in the UK and has been importing flake from Europe. PSL will supply the majority of Signodes requirements under the supply agreement.

PSL has undertaken extensive trials with Signode to test the capabilities of clean PET flake produced at its Blackwood plant.

The Blackwood facility was opened in June 2010 and has the capacity to process 24,000 tonnes of plastic bottles each year (see letsrecycle.com story).

Colin Keyse, sustainability director for PSL, said: This represents a big step forward for recycling in Wales. It is only through closing the loop that the full benefits of this process are felt. It takes Wales a step closer to its goal of One Planet Living.

A spokesman for PSL told letsrecycle.com that the exact supply level and value of the contract are subject to commercial confidentiality.

Supply

Colin Starke, unit manager for Signode Consumables Operations, added: Before reaching this agreement, Signode was importing the raw material from Europe which meant additional freight costs as well as a great level of carbon emissions.

We are delighted that following trials with PSL, we are able to acquire super clean PET flake from a reprocessor much closer to home.

PSL received financial support from the Welsh Assembly Government to help set-up the Blackwood plant, with a 450,000 grant awarded in June 2009 going towards the purchase of hot wash equipment to ensure PET flake produced by the plant is of high quality (see letsrecycle.com story).

Also commenting on the contract award, Chris White, managing director for PSL, said: This is a major step forward for PSL, I am pleased to announce this contract and hope it is the first of many.