Major plastic bottle recycler ECO Plastics has begun the process to find a buyer after being put up for sale.
The company, based in Hemswell in Lincolnshire, operates both its own plastic bottle recycling facility, and a joint venture with Coca-Cola known as Continuum.
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In a statement, Eco Plastics founder and deputy chairman Jonathan Short said: “ECO Plastics recently initiated a sales process to provide a long-term platform for the future strategic development of the business. As part of this process, the board and existing shareholders have held talks with interested parties.
“The company has the support of its debtholders in achieving this goal. Further announcements will be made if and when appropriate.”
Prior to the announcement, one of the Eco Plastics shareholders Ludgate Environment Fund had said that it would be writing down the value of ECO Plastics, which stood at £2 million at the end of September.
Ludgate Environment Fund announced on 12 August that there had been operational challenges at Eco Plastics that had been compounded with unfavourable market conditions.
It said: “Unfortunately, this situation has not improved in recent months, and although the company has been working with creditors to find a solvent solution, this is no longer expected to be achieved.”