A RECYCLING plant is to undergo a £24m expansion including a joint venture with Coca-Cola.
Hemswell based plastic bottle recycler Eco Plastics has secured funding to press ahead with plans to more than double British production of recycled material for soft drinks packaging – to be supplied to Coca-Cola over the next ten years.
The Hemswell facility is already the largest in Europe. The expansion, which secured planning approval in May, will increase overall processing capacity at the plant from 100,000 tonnes to 140,000 tonnes of plastic bottles per year, just under half the total collected in the UK last year. The expanded facility will be fully operational during 2012.
Eco Plastics chairman Peter Gangsted said: “We will recycle used British packaging in Lincolnshire, for re-use in packaging sold in Britain.
“This represents an important milestone for both the drinks manufacturing industry and the recycling industry.
“We are delighted that the markets have recognised the value of this model. The UK sustainable packaging market has huge growth potential”
The expansion funds include a £5m equity investment by Ludgate Environmental Fund Limited, £5m from Coca Cola Enterprises and finance from Close Brothers banking group.
The funds will support the construction and operation of an expansion to Eco Plastics’ existing plastics processing plant, as well as the investment required for Coca-Cola