Wales’ Plastics Sorting Ltd in administration

Of the 30 staff, 27 have been made redundant with the remaining three currently employed to help with a potential sales process. The administrators, Begbies Traynor of Cardiff, have given “close of business” on Monday 6 February as the deadline for offers.

Hailed by former Welsh environment minister Jane Davidson as a wonderful example of the way in which the green economy can help transform the Valleys and communities across Wales, the plant received one of the largest sums of Welsh government money seen in the recycling sector.

It is thought the plant ceased operations earlier this week. Now, administrators Begbies Traynor of Cardiff are handling matters and are thought to be assessing the plant and hoping to sell it.

The company said that David Hill and Peter Richard Dewey were appointed joint administrators on February 1 2012. It said: The affairs, business and property of the company are being managed by the joint administrators, who act as the Company’s agent and contract without personal liability.

David Hill said: We are continuing to trade the business while we conduct a review of its operations and look for a buyer to take on the business as a going concern.

Two grants

PSL was the recipient of two grants, totalling 1.3 million from the Welsh Assembly Government to help develop the facility on the 91,500 sq ft site at Blackwood Business Park in Blackwood (see letsrecycle.com story).

The development of the plant was heavily supported by leading community sector champion Mal Williams, who became chair of Plastics Sorting Ltd. Mr Williams is also chair of the Welsh community reuse network and chair of the Campaign for Real Recycling which is broadly opposed to processing recyclable materials in materials recycling facilities.

Baylis

On the technical side the plant brought in expertise in the shape of Chris Baylis who has some 17 years of experience on the plastics recycling side.

When it opened thefirmwas a subsidiary of the Cardiff-based social enterprise Cleanstream Group, which also includes Hertfordshire-based plastics recycling firm Baylis Recycling. Neither Cleanstream norMr Bayliscould be contacted today.

Ahead of the launch of the plant in April 2010, Mr Williams described the success in developing the plant as the culmination of a dream held for over twenty years to start closing the recycling loop in Wales.

The plant’s procurement expert was Chris White, who had substantial experience in the sector and lead purchasing and recycling work at Aylesford Newsprint for many years.

Statements

Reasons for the difficulties at Plastics Sorting Ltd are unclear. Material quality is thought to have been an issue with some material arriving not being clean enough for the plant. And, it is also known that one of the companys customers for raw flake, Signode of Swansea, has said it may be closing its facility.

Judicial review

Plastics Sorting Ltd is one of the seven claimants in the Judicial Review over the government’s interpretation of a clause in the revised Waste Framework Directive concerning whether separation collection allowed for material to be collected commingled. The other claimants were:Smurfit Kappa UK,UK Recyclate Ltd, Palm Recycling Ltd,D S Smith Paper Ltd, Novelis UK Ltd and Ardagh Glass Ltd.

Administrator

Begbies Traynor said: Interested parties have till close of business on Monday, February 6, to register their interest with Begbies Traynor, 5^th Floor, Riverside House, 31 Cathedral Road, Cardiff, CF11 9HB, telephone 029 2022 5022.