A multi-million pound agreement will see Viridor provide 10,000 tonnes of plastic bottles to Eco Plastics in 2014.
Under the 12-month contract, Viridor will provide around 8 per cent of Eco Plastic’s 150,000 tonne capacity in Hemswell. It also means that 35 per cent of Eco Plastic’s feedstock is now provided through long-term partnerships rather than the spot market. The company has a target that 70 per cent of its stock will come from long-term partnerships by the end of 2014.
Eco Plastics deputy chairman Jonathan Short said: “Obviously, a contract of this size is important to us, and we’re delighted to be partnering with one of the UK’s leading waste management companies in Viridor.
“But today’s announcement is also strategically significant for ECO Plastics, marking the latest phase in our plan to offer more strategic, long term partnerships to our key suppliers.
“Buying material on the spot market can at times deliver robust prices, but it provides very little certainty over future revenue levels. Crucially, that makes it difficult to raise the finance necessary to invest in new technology, which in turn means that there are still valuable resources which can’t currently be recycled domestically.
“As it becomes more and more difficult to export our waste overseas, we’re left with a choice between building new infrastructure and going back to landfill. We see an industry-wide move to longer agreements as the fundamental to resolving that dilemma.”
Viridor Resource Management director Herman van der Meij said: “Viridor has led the way in UK recycling through the development and operation of advanced technology recovery facilities. Practical partnerships and cross-sector collaborations are essential if we are to move towards a real circular economy.
“This deal shows leading businesses working together across the value chain, from goods manufacturing, retail, collection and sorting to reprocessing and remanufacture.”