First Ever UK Recycling Plant to Turn Used Plastic Bottles Back into Food Packaging

The first plant in the UK to recycle plastics into material for food packaging has been announced today through the signing of a £12 million joint private and public sector funding agreement.

The plant, located in Dagenham and operated by Closed Loop London (CLL), will transform the recycling of polyethylene terephthalate (PET) in the UK, turning millions of water, soft drinks and cosmetics bottles back into new food packaging each year. It will also ensure that 35,000 tonnes of packaging, which might otherwise be exported for recycling or sent to landfill, will be converted into packaging material in the UK. It is due to open in December 2007.

Marks & Spencer is the first major retailer to commit to sending plastic waste from its London stores to the Closed Loop London plant for recycling. M&S will also encourage its suppliers to source recycled PET from the plant to make M&S packaging.

Initiated by Closed Loop London, the project has received private equity funding from Foresight Venture Partners and a banking facility from Allied Irish Bank (GB), and is also supported by public sector funding from the London Development Agency (LDA) and WRAP (Waste & Resources Acton Programme).

Chris Dow, managing director of Closed Loop London, said:
“The development of this facility is the realisation of a three year vision to close the loop on plastics recycling in the UK. We are delighted to be able to bring to the food packaging manufacturers a commercially viable and environmentally responsible option when specifying packaging. The UK will have a world class facility for processing its plastic waste and need not export this material for reprocessing into low grade applications. I would like to thank all the partners, and particularly WRAP and the Mayor of London, for their support in making this recycling plant a reality.”

Mayor of London Ken Livingstone said:
“Today’s announcement is a big leap forward for recycling in the capital and will boost our fight against climate change. This agreement is a great example of partnership working, the London Development Agency has secured the land for the plant and London Remade has supplied significant expertise. We need real investment in recycling facilities rather than dumping our rubbish in landfill sites or sending it to incinerators to be burnt.”

Jennie Price, Chief Executive of WRAP, added:
“There is real public demand for plastics recycling, and a strong desire to see that recycling happening close to home. This project is a tremendous step forward in the UK’s ability to meet this expectation and also to fulfil increasing demand for recycled PET from UK business.”

Stuart Rose, Chief Executive, Marks & Spencer, said:
“Recycling is an important way for us all to reduce our impact on the environment and the Closed Loop London plant is a major step forward for recycling in the UK. We will be able to send our own plastic waste to the plant for recycling and use even more recycled plastic in M&S packaging. Reducing the amount of waste from our stores and using more sustainable sources for our packaging is also one of the main aims of our new ‘eco-plan’, Plan A.”

The 35,000 tonne capacity plant, which could be up and running by December this year, will use patented technology developed by South Carolina-based United Resource Recovery Corporation to sort, granulate and super clean the recycled plastic bottles to produce a high quality raw material that has been tested extensively and is widely used in food applications in both the US and Europe.

Andrew Page, a Partner at Foresight Venture Partners, said:
“Closed Loop London represents a huge step forward in plastic recycling in the UK, bringing together an entrepreneurial business team with the private funding and strong public sector support. The real attraction for Foresight is investing in a project that achieves the twin aims of being an exciting commercial opportunity but also satisfies consumer demand for environmentally friendly products.”

Martin Brown, Manager - Corporate Banking at Allied Irish Bank (GB), commented:
“As a leading bank in the environmental services sector, we are delighted to support this exciting development for the industry, which we believe will have a major impact on landfill diversion and recycling in the UK. We have worked closely with Closed Loop London from the beginning of this venture and believe that the Dagenham plant will prove to be a major innovation and a huge step forward for recycling in the UK.”