Veolia Environmental Services has awarded a contract to Closed Loop Recycling to process more than 100,000 tonnes of plastic bottles from its sorting centre at Rainham, Essex.
Both high density polyethylene (HDPE) and polyethylene terephthalate (PET) will be delivered to Closed Loop Recycling’s nearby Dagenham plant.
Veolia said the plastics recycling industry had increased in value from almost nothing to £150m in six years, leading it to invest £5m in the Rainham plant and to award this contract.
Closed Loop Recycling’s Dagenham plant has been operating since December 2008.
It reprocesses more than four million bottles a day and plans a significant increase in capacity planned in the coming year.
Veolia Environmental Services’ executive director, treatment, Gavin Graveson, said: “Plastic collection, sorting and recycling is now firmly embedded in the UK’s waste strategy, as a direct result of the willingness of both companies to invest in the sector.”
Closed Loop Recycling chief executive Chris Dow said: “We are delighted that our two companies have been able to confirm this new agreement.”