Hopes have been raised that Closed Loop Recycling may reopen its plant in Dagenham next week.
The current owners, the Dubai-based firm Euro Capital, shut down the facility this week and temporarily laid off all staff.
These owners only bought the plant in May and rebranded it Euro Closed Loop Recycling, but have already decided to sell.
However, there has been interest in purchasing the recycling plant from these owners, and the possibility exists that it could reopen next week with former staff brought back in.
This is dependent on finding an owner that wishes to continue with the operation of the facility.
It is also dependent on agreeing a way forward with suppliers of material and the dairies that ultimately take the finished product to ensure the financial sustainability of the business.
A source close to the company said: “Euro Closed Loop Recycling has been closed pending supplier negotiations.
“But negotiations are also pending with potential new owners with the aim of reopening the facility as early as next week.”
Closed Loop Recycling has been the biggest buyer of HDPE milk bottles in the UK since it opened seven years ago and has had to deal with both volatile virgin polymer prices and recycled bottle prices.
