Viridor has announced it is closing its mechanical recycling site at Avonmouth due to market conditions following a strategic review.
Viridor said its UK mechanical recycling operations have been negatively impacted by “persistently and increasingly challenging” market conditions, and the delay to policies to increase recycling set out in the 2018 Resources and Waste Strategy.
Combined with reduced demand for recycled plastic and packaging products from the consumer goods sector, Viridor said this has had a “material impact” on the financial viability of its UK mechanical recycling operations.
Viridor also said that imported recycled plastics from low-cost countries have increasingly flowed into Europe displacing domestic supply.
Despite sustained investment, Viridor said recycling rates are below where they were projected to be in 2020.
Viridor said the proposed closure of Avonmouth will be subject to the normal consultation process. It is currently exploring redeployment opportunities within the wider Viridor business for employees impacted by the decision.
A separate review of the site at Rochester is currently ongoing.
In October, Plastic Recyclers Europe said the EU’s plastics recycling industry has gone into recession.
Commenting on the recession announcement, Ton Emans, Plastics Recyclers Europe’s President, said: “This situation undermines the progress and investments made to improve recycling processes.
“Many recyclers are struggling to survive in a market flooded with uncontrolled imports that fall short of EU requirements.”
