Ecotech London enters administration
Plastics recycling company Ecotech London Ltd., Rainham, United Kingdom, has filed for administration. The company made the official announcement 6 June 2016, though it had closed its doors several weeks earlier.
Charles King and Hunter Kelly of Ernst & Young (EY) were named the administrators for Ecotech.
On its website, the company says it produced high-spec recycled polyethylene terephthalate (PET) flake for use in food packaging and in other industrial applications. Ecotech says it provided “a reliable alternative to virgin PET that preserves the environment and does not require technical compromise”
Ecotech opened in 2014 and was able to process 17,500 tonnes per year of bottles at its sorting and reprocessing facility in Rainham.
King says, “Ecotech has faced increasing difficulties over a prolonged period due to the decline in the crude oil price, which impacted on the selling price and overall demand.
“This, coupled with a decline in yields due to feedstock quality and operational issues with the plant, has resulted in significant losses for the business.”
Another source says the company’s incoming supply was diminished because of waste collection agencies no longer carrying out detailed sorting of recyclables. This has resulted in lower yields and increased byproduct waste, the source says.
The plant features technology provided by STF Group, a Germany-based PET recycling technology supplier. According to Ecotech, more than 70% of all PET bottles recycled in Germany are processed in STF systems.