WRAP loan helps fire-hit plastics firm

WRAP chairman, Peter Stone, this week (November 4) revealed that WRAP had supported AWS Eco Plastics after the company suffered a severe blaze at its Hemswell plastic bottle reprocessing facility on August 25 2009 (see letsrecycle.com story).

Speaking at the organisation's annual event in London, Mr Stone said: “We helped AWS at a critical time. The firm had suffered a serious fire and our loan enabled the company to survive some serious cashflow problems. We made a significant and important difference.”

Insurers

AWS had recently announced that its insurers had accepted full liability for the damage caused but it had not disclosed the WRAP support. Without the WRAP funding it is thought that the company could have faced considerable difficulties – the insurance claim is for more than £20 million.

Jonathan Short, managing director of AWS, said: “Our intention is that we will be fully operational within a 12 month timeframe – if not sooner. In the meantime, we are still capable of producing our key r-PET pellet product for use within the bottle industry.”

He added: “We would like to take this opportunity to thank all our suppliers and customers for their understanding during what has been a difficult period for all concerned since the fire. We look forward to continuing to work together during our exciting rebuild and expansion programme.”

Impressed

Today, commercial director Duncan Oakes, told letsrecycle.com that AWS had been very impressed with WRAP's response. “They came the day after the fire and the support came very quickly. Our bank was very supportive but the fire gave us a considerable financial challenge. I would like to say that we were really impressed at how quickly WRAP responded to the situation.”

Currently, said Mr Oakes, work is progressing well on demolishing the fire-hit building. “Demolition is now 80% complete and we have designed a new building and will be placing equipment orders in the next few days.”

The projected timetable for the new facility could see it operational by May next year although this is dependent more on supply of equipment than construction work.

Rebuild times have been shortened because the 80-year-old concrete floor of the plant was not damaged and can be reused in the new building.

WRAP

Whether WRAP will come to the rescue of other recycling businesses whose premises suffer from fire in the future is unclear. WRAP chairman Peter Stone commented: “It is not our job to do things which can be done by the private sector. But it is our job to do things that without our support and specialist support will not happen.”