Biffa said it expects its recycled high-density polyethylene (rHDPE) market to grow despite price volatility, as it prepares to double capacity at a milk bottle recycling facility.
Subsidiary Biffa Polymers announced a £6.5m investment into a new recycling line at its Redcar plant in the Tees Valley.
It expects a second rHDPE line will enable the company to double output of the material, used to make milk bottles and food trays, from 10,000 to 20,000 tonnes a year.
Last year, the company’s only serious competitor, Closed Loop Recycling in Dagenham, closed as it struggled to compete with the low price of virgin raw materials.
Biffa Polymers commercial director Chris Hanlon said his company was less exposed to market volatility than Closed Loop due to its position as a leading firm and because it sourced a lot of its feedstock in-house.
“Our current dairy customers remain committed to using recycled material in their products, and we are also exploring a number of other exciting opportunities for our added volume. We only see the market for food-approved rHDPE growing,” he said.
Hanlon added that the new rHDPE line, expected to be operational in early 2017, would help to meet a “growing demand”.
“We remain committed to continued investment and improvement in our facilities. Our expert team are open to exploring possible growth strategies that will enable us to enhance our offering and increase our processing capacity further,” he added.