Falkirk-based firm Avondale Advanced Waste Treatment has announced that it is having to close its materials recycling facility due to a fall in prices for recyclate as well as a rise in the cost of disposing of refuse derived fuel.
The company said in a statement that it wasn’t getting the revenue it needs to continue from recyclate prices, while a shortage of RDF users both in the UK and in the export market led to unsustainable operating losses.
Avondale Advanced Waste Treatment director John Holt said: “While we believe the longer-term opportunities for professionally operated businesses such as ours are positive, increasing operating costs, the reduction in volume and market value of recyclates and rising refuse derived fuel (RDF) disposal prices are having a direct impact on the sustainability of the MRF.
“Having carefully considered all of the issues and options, we have proposed to close the MRF from 31 May 2013 and have started collective redundancy consultation with employee representatives.
“Right now, our priority is to work with staff throughout the consultation process and to keep our customers fully informed.
“The landfill operation is a separate business managed by Avondale Environmental and is not included in the consultation process.”
The MRF was opened in February 2012.