GFSL opened a 20,000 tonnes-per-year capacity recycling plant in Redcar, Teesside less than 12 months ago, designed to process rigid plastics such as PP, PE and PVC plastic waste – primarily made up of plastic garden furniture and toys from household waste recycling centres (HWRCs).
The 84,000 square foot Redcar facility, located on the Wilton International estate, was set up with investment totalling around £2.2 million. This included funding from the North East Regional Growth Fund. The plant was designed to produce a plastic regrind for use in the manufacture of new plastic furniture. GFSL employed around 17 employees at the site, which has now been closed down.
The firm was established as an agricultural supplies firm in 1999 but had switched its focus to trading waste plastics for export in 2010, before opening the Redcar site in early 2014 (see letsrecycle.com story).
Administrators were appointed at a general meeting of the firm’s board on December 15 after it was revealed that the company had amassed debts totalling more than £1.9 million. This includes £463,200 owed to HSBC Equipment Finance and a further £220,000 owed to HSBC PLC.
Creditors
Other creditors owed money as a result of the collapse of the firm include Independent Investments Limited – the owner of the land on which the plant was located – which is owed more than £149,000 and Aldermore Bank PLC which is owed in excess of £104,000.
Documents released by the administrators – John Twizell and James Sleight of Leeds firm Geoffrey Martin & Co – reveal that the firm has assets including plant and equipment with a book value of £1.2 million, which upon sale is expected to generate around £438,000.
The financial papers also reveal that the firm’s former directors are owed close to £550,000 – including Janice Moyes (£450,000), Lance Newton (£80,000), Michael Massey (£20,000) and Martin Robb (£8,511).
A number of regional transport and shipping firms and waste management companies are also listed as creditors of the company.
Market conditions for plastics recyclers have become tricky in recent months with the value of recovered plastics falling, linked to a drop in oil prices to its lowest level since 2009. One notable casualty has been the major plastic bottle recycler ECO Plastics, which went into administration in December and was purchased by investment firm Aurelius (see letsrecycle.com story).
Hilco Industrial is marketing the equipment from the facility, details of which can be found on the firm’s website. The company has also posted a short video of the plant in operation which can be viewed below.
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