LDPE plastic bag recyclers, PlasRecycle, has gone into administration, it has been announced.
PlasRecycle announced the news in a statement, which read: “On 15 July 2016 Robert Hunter Kelly and Charles Graham John King were appointed Joint Administrators of Plasrecycle Limited.
“The affairs, business and property of the company are being managed by the Joint Administrators who contract as agents of the company and without personal liability.”
From its £12m plant in South East London, PlasRecycle processed bags and films into a plastic granulate used to manufacture new bags and damp proof membranes.
The company raised finance for the plant from investors including Foresight Environmental Fund, the London Waste & Recycling Board and WRAP.
Hunter Kelly, Joint Administrator, said: “The cost and time to get this plant operational was significantly more than originally envisaged, leading to greater levels of debt.
“However, with its unique process, PlasRecycle has all the fundamentals to be a significantly profitable business. We have had good levels of interest and would encourage interested parties to get in touch as soon as possible.”