Waste recycling and management company Viridor has decided to propose the closure of its mechanical recycling facility in Avonmouth, UK.
The company took this decision following a detailed strategic review of the site.
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The company cites persistently challenging market conditions and the absence of anticipated plastic recycling legislation as primary reasons for the decision.
A separate review of Viridor’s Rochester site continues.
The Avonmouth site’s operations have reportedly been under strain due to lower-than-expected recycling rates and delays in policy implementation intended to boost UK recycling.
This comes despite sustained investment from Viridor in the last four years to improve mechanical recycling capability at the site.
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By GlobalDataThe company commissioned the Avonmouth polymers recycling facility and expanded its production.
In addition, the global overcapacity in virgin polymer production and increased competition from imported recycled plastics have impacted the financial sustainability of Viridor’s mechanical recycling operations in the UK.
The proposed closure will undergo the standard consultation process, with Viridor exploring options within the company to reassign affected employees.
Despite this setback, Viridor reaffirms its commitment to the circular economy and the UK’s net-zero goals.
The company continues to invest in waste management and decarbonisation, including a significant role in the HyNet industrial decarbonisation cluster.
In a statement, Viridor expressed: “Today is a particularly difficult day for our colleagues at Avonmouth who have worked incredibly hard under challenging market conditions to make our mechanical plastic recycling operations commercially viable.”
Meanwhile, the company’s subsidiary Quantafuel, acquired for approximately £100m ($129.14m) in 2023, is focusing on chemical recycling infrastructure and a joint venture with Resource Denmark.
