Mon, 16 May 2016 | ADMINISTRATION
A plastic milk bottle recycling firm based in Dagenham has been placed in administration less than a year after being acquired by an investment company in Dubai.
Euro Closed Loop Recycling was created less than 12 months ago following the acquisition of Closed Loop in a pre-pack administration agreement by Euro-Capital, a Dubai-based investment company. The Dagenham plant, which operates under Euro Closed Loop Recycling, was formed in 2008 and recycled an average of 35,000 tonnes of plastic milk bottles per year.
Once acquired in 2015, Euro-Capital scaled back operations at Euro Closed Loop Recycling because the plant was losing an estimated £300,000 per month, according to the new owners. The investment firm also said that they could not compete with the cheaper-to-produce virgin plastics.
Jason Elliott and Craig Johns of Manchester-based insolvency firm Cowgill Holloway Business Recovery LLP have since been appointed as joint administrators. They have been tasked with finding a buyer for the optical sorting, granulation and washing machinery used in the plant, collectively said to be worth millions of pounds.
Selling off the assets of the distressed business represents a huge blow for the UK recycling industry. Furthermore, significant investments had already been made in the recycling firm, with £4.7 million coming from Sevenoaks investment company Foresight Group and grants from the Waste & Resources Action Programme (WRAP) charity and London Development Agency (LDA).
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