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Closed Loop sale recoups £3m

Details of Veolia’s purchase of the plastic milk bottle recycling facility formerly operated by Closed Loop Recycling have been published, valuing the deal at £3m.

As reported by MRW in April, administrators were appointed following the collapse of Euro Closed Loop Recycling, a company formed after the takeover of the Dagenham plant from failed Closed Loop Recycling in 2015.

Insolvency firm Cowgill Holloway Business Recovery partners Jason Elliott and Craig Johns became joint administrators and, at the time, anticpated that machinery would be dismantled and sold off.

But in July Veolia announced its acquisition of the plant’s manufacturing assets, creating 30 permanent jobs. Closed Loop Recycling had more than 100 employees.

A progress report from Cowgill Holloway shows the deal, completed on 27 June, amounted to £3m plus VAT for the plant and machinery.

Creditors Euro Packaging Jersey and Euro Packaging UK were to be paid £2.5m and £400,000 respectively. Costs incurred by Elliott and Johns were over £30,000.

At the time of Veolia’s announcement, Mayor of London Sadiq Khan said he was “delighted” that the firm had bought the “important facility”.

He said: “I am determined to redouble efforts to increase the amount London recycles. This plant will be able to recycle all the capital’s empty milk bottles – a mountain of waste that would otherwise have been sent to landfill. This is good news for London and good news for the environment.”

Estelle Brachlianoff, Veolia’s senior executive vice-president, said: “We are interested to collaborate in this space since co-operation with the manufacturing sector, the people actually making things from recovered materials, is essential in order to be successful for the long term.

“This is a great opportunity to work in tandem with our Rainham plastic recycling facility to turn the rHDPE milk bottles back into bottles. We are excited at mastering the full supply chain by moving into this type of manufacturing.”

The new business will produce around 10,000 tonnes a year of high-quality food-grade rHDPE pellets.

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