PlasRecycle is set to open a £10.7m plastic bag recycling facility in Southeast London, which will convert plastic bags and film into new black bags.
The plastic bag and film recycling facility is set to open towards the end of the year and will handle used polythene shopping bags and packaging film that usually either end up in landfill or are incinerated.
The plant is expected to process 20,000 tonnes of the material each year into a clean plastic pellets that will replaces virgin material of new black bags and carrier bags.
The news comes only days after Deputy Prime Minister, Nick Clegg, announced that the government intends to introduce and single use bag levy in 2015.
PlasRecycle will source bags and film from waste companies, retailers and councils and expects to create 32 jobs at the plant.
Lord de Mauley – “There is a huge global market for waste and recycling and I want to see UK businesses leading the way on this and helping us compete in the global race”
The company raised finance for the plant from investors including Foresight Environmental Fund, the London Waste & Recycling Board and WRAP.
Duncan Grierson, founder of PlasRecycle, said a decision by China to restrict importation of lower-grade plastic film from UK recycling centres had created a need for a reprocessing plant in Britain.
London Mayor Boris Johnson welcomed the plant, heiling it as a part of the city’s “burgeoning” recycling sector.
Waste minister Lord de Mauley added: “There is a huge global market for waste and recycling and I want to see UK businesses leading the way on this and helping us compete in the global race.”