Ecotech London enters administration

Ecotech London Limited,  a London-based plastics recycling company has filed for administration. The company, with a single location in Rainham, Essex, U.K., made the official announcement on 6 June 2016, although the company had closed its doors several weeks earlier.

Ernst & Young (EY) was named the administrator for the Ecotech. Charles King and Hunter Kelly from EY were appointed joint administrators to Ecotech.

On its website, the company writes that it produces high-spec recycled PET flakes that are used in food packaging and other industrial applications. The company adds that it focused on “a reliable alternative to virgin PET that preserves the environment and does not require technical compromise”

The company was opened in 2014 and was able to process 17,500 tonnes per year of bottle sorting and reprocessing facility in Rainham, U.K.

In a statement, King notes, “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 notes the supply was diminished due to waste collection agencies no longer carrying out detailed sorting of waste. This has resulted in lower yields and increased by-product waste.”

The technology solution has been provided by STF Group, a large European PET plastic recycling company. According to Ecotech, more than 70 percent of all PET bottles recycled in Germany are processed in STF systems.