UK waste management firm Biffa has confirmed the closure of its Washington plastics recycling facility, citing persistent challenges in both domestic and global markets for high-density polyethylene (HDPE) and polypropylene (PP) flake. The plant was mothballed in June 2024 and formally closed in February this year.
Shortly after it opened in 2022, the company said the waste packaging processed at the facility consisted of items such as detergent and shampoo bottles, and ice cream and margarine tubs. It was not producing food grade recyclate in Washington.
The decision comes against a backdrop of weak economic conditions in the UK and Europe. Producers of primary polymers who were facing narrow margins and lower plant utilisation rates were in some cases resorting to "very aggressive pricing to regain share", according to the waste management company. "Unfortunately, this environment is very challenging for recyclers who need to compete with these low prices," said Biffa.
On the whole, there had not been any dramatic change in demand from packaging manufacturers, but "their ability to source cheap imported recycled materials from Asia has had a negative effect on the UK recycling industry". The waste management company also blamed a number of other factors including the economic climate; regional conditions, such as power and labour costs; and domestic concerns regarding the regulatory environment, saying that they were "all not conducive to UK recycling".
"Given these conditions, we consolidated our processing within a smaller number of operationally sustainable facilities with capacity for growth prior to a broader economic recovery," said a Biffa spokesperson.
Following the closure of the Washington site near Sunderland in the Northeast of England, Biffa Polymers is active at three locations. Plastics recycling operations at Seaham, Redcar and Sherburn "continue to operate as usual", according to the company. The Redcar plant processes PP and HDPE waste with a capacity of up to 85,000 tonnes per year. The company's Seaham and Sherburn sites, with annual capacities of 57,000 tonnes and 25,000 tonnes respectively, both recycle PET.
Call for improvements to regulatory environment for recyclers
Biffa stressed the continued role of plastic recycling as a core part of its strategy. "Recycling of plastic will be important for many years to come, and we will continue to assess and respond to market conditions to ensure that our facilities are appropriate for the environment and have the flexibility to grow as demand does," said the company.
In Biffa's view, there is a very real need for more proactive steps to be taken to improve the regulatory environment for recyclers. "The effect of the PRN [Packaging Recovery Notes] in exports has a detrimental effect on the local value of recycled material and the requirement for recycled content as supported by the Plastics Packaging Tax needs to see progressive increases to drive the use of recycled materials", according to the company.
In order to future-proof supply chains and resources to drive growth, and help boost the UK economy, Biffa recommends phasing out the export of unprocessed plastic waste: "Exporting unprocessed plastic waste sends jobs, raw materials and environmental risk abroad, and undermines the UK’s domestic recycling sector, fuelling a race to the bottom".
The company also advocates demand-side measures, including a progressive increase in the Plastics Packaging Tax (PPT) threshold to 50 per cent recycled content by 2030. At present, the tax is levied on plastic packaging containing less than 30 per cent recycled material. Furthermore, Biffa calls for a crackdown against "bogus imports of non-recycled materials passed off as recycled".
The confirmation of the Washington site's closure comes amid a spate of other recycling setbacks. Veolia's decision to end its plastic recycling operations in Germany became known in mid-July, and Borealis announced last week that it would no longer proceed with plans for a large-scale mechanical plastics recycling plant near Vienna. Late last year, Viridor announced that it was closing its Avonmouth recycling facility in Gloucestershire. One of the few bright spots has been Veolia's announcement of plans of a new €83m sorting and recycling plant for PET including trays in Battlefield near Shrewsbury.
