The UK’s largest reprocessor of recycled HDPE for milk bottles is battling to avoid going into administration.
A slump in the price of virgin HDPE due to the dramatically lower oil price has made it uneconomic to run the plant.
But a premium of just 0.1p per two-pint plastic bottle for using recycled content would secure the future of the plant, according to Closed Loop Recycling chief executive Chris Dow.
Unless the premium is introduced in the next few days, the company could be forced to call in administrators.
However, the company is working with Resources Minister Dan Rogerson and WRAP chief executive Liz Goodwin and her team to try to find a solution to save the company.
Chris Dow told Resource Efficient Business he is hopeful that a solution will be found in which the dairies, bottle manufacturers and retailers support the company through this period of low oil prices that he expects will not last in the long-term.
He added: “There is a real change that sanity will prevail. We live in a country where we provide £1.3 billion to support jobs in the North Sea oil fields because of the impact of low oil prices, but zero pence is provided to support the circular economy.
“Dan Rogerson and Liz Goodwin have seen sanity and the bigger picture, and their support means I am hopeful Closed Loop Recycling can be saved.”