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Closed Loop reveals plans to double Dagenham plant

Plans to double the current capacity at Closed Loop Recycling’s plastic bottle recycling plant in Dagenham have won the approval of business minister Mark Prisk.

As a result of high demand for recycled food-grade plastic (rPET and rHDPE) the recycler has revealed a £12m extension to the facility. It will process 60,000 tonnes of bottles each year, up from the current 35,000 tonnes.

The expansion will result in increased rHDPE output, improved sorting facilities and better economies of scale. An additional 50 jobs will also be created at the site.

Prisk said: “If few are going to succeed in rebalancing our economy it is vital that we take advantage of emerging business opportunities, such as low carbon products and services.”

Following a joint agreement with the London Thames Gateway Development Corporation, Closed Loop Recycling will buy an extra three acres of land next to its current site on the London Sustainable Industries Park. It hopes the additional capacity will help support ambitious plans for partner brands such as Britvic.

Closed Loop Recycling managing director Chris Dow explained: “It is the increased demand for rPET and rHDPE from these big brand owners and packaging companies, as well as better collection rates and increased recycling by consumers that is continuing to drive the market for food grade plastic.”

Building is to start in autumn with little impact on the existing facility. Closed Loop is also carrying on with its plans to build a second facility in Deeside, North Wales, however Dow told MRW recently that accessing debt finance from banks was still difficult for businesses:  “Banks are saying they want greater security with longer contracts but we’re trying to explain that it doesn’t work that way in this industry. We cannot offer 25-year contracts like a private finance initiative could. All of our numbers are right, we just need to attract investment.”


Photo: (l-r) Mark Bradbury, deputy director of development for the London Thames Gateway Development and Chris Dow

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