UK-based plastics recycler GFSL is in the process of appointing administrators with a view of going into voluntary liquidation.
A source close to GFSL told Resource Efficient Business: “Production has been ceased at the plant and GFSL is planning to go into voluntary liquidation. There have been technical and funding issues at the Redcar plant that has led to the shutdown.”
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Earlier this year, the company opened a new mixed rigid plastics recycling facility that was designed to treat around 20,000 tonnes of mixed rigid plastics including polypropylene (PP), polyethylene (PE) and polyvinyl chloride (PVC).
The intention was to provide regrinds for use in the manufacturing of a range of plastics products comprising plastic furniture, pipes and pallets.
It is unclear whether administrators will look to sell the facility in Redcar as a going concern, or whether it will sell the assets of the business in batches.
GFSL previously traded plastics prior to building the plant.