The multi-million pound agreement will see 10,000 tonnes of plastic bottles supplied throughout 2014 – almost 8 percent of ECO Plastics’ total capacity.
With the capability to sort 150,000 tonnes of mixed plastics, the business’ Hemswell facility is responsible for reprocessing 35 percent of the bottles collected in the UK every year.
The announcement is the latest in a trend which has seen a growing portion of the industry move away from spot trading and instead develop long-term collaborations. The additional surety provided by such agreements has allowed companies like ECO Plastics to invest in the creation of new technology, further developing the UK’s waste infrastructure. In total some 35 percent of ECO Plastics’ feedstock is now supplied through longer partnerships, with a target to reach 70 percent by the end of 2014.
Nick Brown Coca-Cola Enterprises – “We are delighted to see the way our partnership with ECO Plastics is transforming Recycling in GB. Collaboration unlocks great potential to optimise operations and this deal with Viridor is great news for all parties involved”
Commenting on the announcement, Jonathan Short, deputy chairman of ECO Plastics said: “Obviously a contract of this size is important for 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 material 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.”
Herman van der Meij, director of Viridor Resource Management, 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. We’re proud to be working with CCE and ECO Plastics.”
Nick Brown Associate director for Coca-Cola Enterprises added: “We are delighted to see the way our partnership with ECO Plastics is transforming Recycling in GB. Collaboration unlocks great potential to optimise operations and this deal with Viridor is great news for all parties involved. It shows how leaders in the waste management industry are evolving to grasp the opportunities offered in a more circular economy and will act as reassurance to householders & Local Authorities that the domestic recycling industry is thriving.”