More difficulties in the plastics sector as two more companies go under

0
49
Advertisement

Two more companies in the plastics recycling sector have appointed administrators.

CK Group has appointed Graham Newton and Eddie Kerr from BDO who have continued to run the business at low levels since 13 July when the company was placed into administration.

The administrators have also sold the Hull and Melrose plants to Sharp Polymer Solutions, which is run by former CK Polymers director Marc Sharples.

17 employees have been transferred to Sharp Polymer Solutions from CK Group as part of the transaction.

Ten staff have been retained to run the main Binbrook facility at basic operating levels until a buyer can be found.

According to the administrators, CK Group suffered from a combination of low oil prices and a reduction in export demand, particularly from China.

The administrators continue to seek offers for the Binbrook facility from interested parties.

On 15 July, the administration of carrier bag recycler PlasRecycle was also confirmed, with Robert Hunter Kelly and Charles Graham John King from EY appointed as administrators.

PlasRecycle, according to the administrators, ran out of cash due to difficulties in raising additional funding to cover ongoing losses caused by lower levels of production than anticipated and covering the cost of debt that had arisen as a result of the time taken to get the plant up and running.

Production of existing orders is still being done, but no new material is being taken in.

The administrators are seeking expressions of interest in the company and its assets and are hopeful of a sale before production ceases.