The investment, which includes the help of packaging recovery note (PRN) funding, increases its capacity for recycling polyethylene-based plastics by 66% to 50,000 tonnes per year.
The company will recycle plastic packaging waste into damp-proof membrane, commonly used in the construction industry.
Compliance scheme Valpak, which worked with Mercers to secure the PRN funding through a long-term contract, said that this was the sort of investment needed to make sure waste was dealt with “responsibly” in the UK.
The managing director at Mercers, Doug Mercer, said: “We see stories in the news about UK waste being dumped in the Far East. This investment will help to make sure that UK waste packaging stays in the UK where it can be properly recycled.”
The machinery works by shredding ethylene-based plastics waste, such as HDPE and LDPE, before heating it until it becomes a liquid. It is then filtered, pelletised and moulded to produce damp-proof membrane.
The equipment is currently in the commissioning stage and expected to be fully up and running by January 2022. Mercers says it will also employ an extra 26 employees, to join the existing staff of 74.
‘Greater demand’
Ben Richardson, procurement director at Valpak explains: “This is exactly the kind of investment we need to ensure that UK packaging waste is securely recycled on these shores. As a manufacturer, as well as a recycling business, Mercers offers additional circularity by guaranteeing a market for the material recycled.
“Across the industry, we are seeing greater demand for UK-produced PRNs, while upcoming legislation, such as the Plastic Packaging Tax, is driving demand for recycled material. At Valpak, 65% of our PRNs are sourced from UK reprocessors – compared with a UK market average of 48% – and we support UK recycling wherever possible.”
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