Plastics recycler ECO Plastics has signed a contract with Viridor for the supply of 10,000 tonnes of plastics bottle to its Lincolnshire facility.
The 12-month deal, described as a “multi-million” pound agreement, increases to 35% the share of feedstock that ECO Plastics obtains through long term partnerships.
The company has set itself a target to reach 70% by the end of 2014.
“[The deal] is strategically significant for ECO Plastics, marking the latest phase in our plan to offer more strategic, long term partnerships to our key suppliers,” said Jonathan Short, deputy chairman of ECO Plastics (picture above, centre).
Partnerships for the supply of materials constituted a more reliable alternative to buying on the spot market, he said, although the latter could deliver “more robust prices”.
Long term agreements provided the certainty necessary to raise finance for new technology, increasing the UK’s capacity to process materials domestically, he added.
Herman van der Meij, director of Viridor Resource Management (above right), said: “Practical partnerships and cross-sector collaborations are essential if we are to move towards a real circular economy.”
ECO Plastics’ Hemswell facility was expanded in 2011 through a £15m joint venture with Coca-Cola Enterprises. The companies said the plant is the world’s largest and most sophisticated plastics recycling facility, capable of processing 150,000 tonnes of mixed plastics a year, including 40,000 tonnes of bottle-grade rPET pellet.
Nick Brown, associate director for Coca-Cola Enterprises (above left), said: “[The new deal] shows how leaders in the waste management industry are evolving to grasp the opportunities offered in a more circular economy and will act as reassurance to householders and local authorities that the domestic recycling industry is thriving.”