A TV glass recycling firm that closed in January saying it could not afford changes required by the Environment Agency is being advertised for sale after investment talks collapsed.
CRT Recycling (CRTR) in Flintshire, which recycles cathode ray tube glass, stopped operating following meetings with the agency over new guidance on the storage of CRTs to prevent the release of ‘hazardous coatings’ and lead and glass dust.
CRTR said at the time it would have to pay several hundred thousand pounds for new buildings or finance an extension to its site in order to comply with the rules.
The company held talks with other glass recyclers but appears to have been unsuccessful in attempts to secure the investment needed.
Baker Tilly is set to be appointed administrator and is advertising a “business and asset sale”.
A Baker Tilly spokeswoman said: “At its core CRTR appears to have a viable business model and it had developed a market leading position within the industry.”
Justin Greenaway, commercial director at rival firm Sweeep, said he had held talks with a view to investing in CRTR, but believed the company was unsustainable.
He said: “We certainly talked to them, but there’s not enough there to be of interest to us.”
Greenaway said there was a limited market for the glass CRTR recycled.
“That glass traditionally went from CRTR back into making new cathode ray tube equipment. But, clearly, there isn’t much of a demand for cathode ray tubes anymore.”
Sweeep has invested £1.6m on a furnace to melt the lead out of the glass, Greenaway said.
He added that Sweeep had invested in property to expand its storage capacity in the wake of the collapse of CRTR - which had a 30% share of the market.
“CRTR clearly wasn’t a sustainable business. You have to be able to upgrade as legislation moves along, and pay back costs as part of an ongoing business.”
Environment Agency Wales insisted in January that it had made it clear to CRTR that it had time to comply with rule changes. “We do not understand why the company would decide to stop its operation because of this,” said an EA statement.
Carl Krüger, managing director of CRTR, said this week: “The company is going into administration. Baker Tilly will be appointed as the administrators and they are looking to see if they can find anyone to take it on.”