THE WASTE & Resources Action Programme (WRAP) plans to write off its loan to UK plastic bottle recycler, Eco Plastics, consisting of £1.65m.
Eco Plastic’s factory sorts around 140,000 tons of plastic bottles a year, accounting for 35% of the total bottle collection in the UK.
As a result of tough trading conditions, Eco Plastics has lost £2m in share value. Over the past two years, the company has made a loss of £12.5m and this has forced it to go into administration.
An investment group, Aurelius, has now acquired Eco Plastics, Tristan Nagler, Managing Director of Aurelius in London says: “Aurelius is delighted to have acquired ECO Plastics which has a strong position in the UK marketplace. For customers, suppliers and partners it will be business as usual, and we are committed to working with the company to deliver long term, sustainable growth.”
Founder and deputy chairman of Eco Plastics, Jonathan Short added: "This news is not just a vote of confidence in the future of Eco Plastics, but a vote of confidence in the promising future of the UK's fast growing recycling sector.
"Working with Aurelius will take the Eco Plastics story to the next level. This new owner will not only bring in new expertise and financial resources, but also a shared commitment to the development of a more sustainable, circular economy in the UK."
An equity agreement has been made between WRAP and Aurelius, though the terms of the deal are undisclosed.