Hope increases that Closed Loop Recycling will be saved


There is growing optimism that a solution will be found that will mean Closed Loop Recycling will avoid entering administration.

Last week, the Dagenham-based recycler of HDPE milk bottles warned that it was only days away from entering administration as a result of the falling oil price, and falling virgin polymer price as a result (see story).


This meant that the company could not compete with the price of virgin HDPE.

A solution has been suggested by WRAP that would move away from tracking the price of recycled HDPE (rHDPE) to the virgin price. Instead, the dairies as part of the Dairy Roadmap would buy recycled polymer from Closed Loop Recycling based on the current market price of bottles plus the cost of recycling the material.

In a statement, Dairy UK said: “[The industry is] keenly aware that the plastic recycling industry is facing difficult times and we have every intention to meet our targets. It is crucial that all sides of the supply chain work together with the Government to achieve these results.”

While a spokesman from The Co-operative Food said: “We have no plans to move away from the using recycled content in our milk bottles and we will continue to help in the progress towards the Dairy Roadmap targets for recycled content.”

Closed Loop Recycling chief executive Chris Dow (pictured) said the company has been “overwhelmed” by the support across the supply chain for the UK plastic recycling industry.

He added: “This [support for recycled content] is a message that has been repeated by all the key stakeholders across the Dairy Roadmap. They have made their support public, and WRAP now has a solution on the table to ensure the future of plastic recycling. The cost to secure the future of the industry is just 10th of a penny on a two pint bottle of milk.

“Separately, Friends of the Earth has launched a campaign of support with its members who want to see recycled milk bottle content in their plastic milk bottles. We know from a recent YouGov survey that 68% of UK consumers support the future of the industry and are happy to pay the additional 10th of a penny to ensure this.”