Equipment from the £12 million Plasrecycle LDPE plastic bag recycling plant in Woolwich, West London, is to be offered for sale at auction next month, administrators acting on behalf of the company have announced.
PlasRecycle, which was set up by former Sterecycle director Duncan Grierson, developed a plant in South East London to process bags and films to produce a plastic granulate that can be used to manufacture new bags and damp proof membranes.
[gallery_placement]
Hunter Kelly and Charles King of financial advisory firm EY were appointed as joint administrators for the company in July (see letsrecycle.com story) after it was claimed that Plasrecycle had effectively ‘run out of cash’ due to ongoing losses within the business.
The Administrators had been seeking expressions of interest in the company and its assets and hoped to conclude an early sale of the business. However, no sale has been agreed despite ‘strong interest’ from both within the UK and Europe according to EY.
Auction
As a result the 9,000 tonne-per-annum LDPE sorting, washing and extrusion lines from the plant will be sold by auction on 6 October via Hilco Industrial, unless a buyer is found.
In a statement, EY said: “Hunter Kelly and Charles King of EY were appointed Joint Administrators of PlasRecycle and have been marketing the business for sale. A suitable price that would generate the best result for creditors has not been agreed despite strong interest in the business and discussions with several interested parties from the UK and Europe. The equipment will now be sold by auction on 6th October 2016, if a buyer cannot be found by this time.”
The 6.25-acre Plasrecycle facility which was set up between 2013 and 2016, incorporates three main sections which includes plastics sortation and size reduction equipment, dry cleaning and wet washing, densification and extrusion lines.
Equipment
Assets for sale include a Matthiessen SR111DA-177 Bale Breaker, a Linder Jupiter 2200 Shredder, a Bunting Magnetics Overband Magnet, an IMT Separator 80 Light Ballistic Separator, a Bollegraaf Eddy Current Separator and HBGT 250/1600 QC Sorting Conveyor, a Spalec SFLU Vibratory Screen, a Pellenc Mistral M2800 BB Metal Binary Optical Separator, two Pallmann PFV 400/40 Plast Agglomerators and a KweenB YM40 Compact Tubular Film Manufacturing Machine.
A total of £10.7 million in funding was secured to set up the plant, coming from sources including the Waste & Resources Action Programme (WRAP), the Foresight Environmental Fund and LWARB, which provided around £3,455,000.
The facility is located in the Thamesmead area of south London and took LDPE bags from waste management firms, local authorities and retailers.
Related Links
Hilco Industrial – Plasrecycle auction
The post Plasrecycle LDPE recycling equipment to be sold at auction appeared first on letsrecycle.com.