Long-term contract closes the loop as well as the deal for UK recyclers

Plastic bottle recycler, ECO Plastics, and waste management firm, Viridor, have announced a twelve-month contract that they say will to help close the loop in soft drinks packaging.

The multi-million pound agreement will see Viridor supply 10,000 tonnes of plastic bottles throughout 2014 – almost eight percent of ECO Plastics’ total capacity.

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. ECO Plastics say the additional surety provided by such agreements has allowed it and others to invest in the creation of new technology, further developing the UK’s waste infrastructure.

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.”