The plastic recycling industry faces relentless challenges, with closures hitting companies across the UK and Europe. Biffa shut its Sunderland plant in February, barely a year after it opened at a cost of £7 million. Rival Viridor closed its Avonmouth site in 2022, Skelmersdale in 2023, and announced this summer that its Rochester plant would also cease operations.
Plastic recycling plant closures spread across Europe like falling dominoes. Veolia will shut its two German operations this year, while seven recyclers closed in the Netherlands last year. Companies including Borealis, Dow, and Nester abandoned plans to build new recycling facilities in Europe. Plastic Recyclers Europe reports that these developments have eliminated nearly one million tonnes of plastic recycling capacity since 2023.
“Without strong political action, Europe risks replacing its recycling industry with dependence on imports and increasing waste,” the organisation warned, highlighting threats to economic resilience and climate leadership.
Rising Costs and Global Competition
James McLeary, managing director of Biffa’s polymers division, predicts more closures. High energy and labor costs, combined with cheaper imported virgin and recycled plastics from Asia, pressure European plants. The United States faces similar struggles. Low virgin plastic prices there prevent companies from meeting recycled content targets, according to S&P Global.
“Global dependence on Asian plants is growing. Operators in the UK and Europe face tough choices: run at a loss or close,” says McLeary, based in County Durham. The UK exported roughly 600,000 tonnes of plastic waste last year, five percent more than in 2023, worsening the situation.
Loopholes in UK legislation encourage waste collectors to export rather than process plastic domestically. Manufacturers continue to favor cheap virgin plastic from abroad, even paying taxes instead of sourcing recycled material.
Industry Voices Call for Change
Ahmed Detta, CEO of Enviroo, criticizes contradictions within the industry. “A circular economy should benefit everyone involved, but currently it does not,” he says. Brands avoid recycled materials because fines for using virgin plastic remain cheaper than sourcing recycled alternatives.
Steve Morgan of RECOUP warns that the UK risks losing its plastic recycling infrastructure without intervention. “Many UK recyclers cannot compete under current conditions,” he says. UK regulations often favor foreign markets, making reform essential. Morgan emphasizes that advanced technologies exist but lack commercial viability without scaling and support.
RECOUP urges the UK government to implement a single plastic recycling certification scheme to reduce waste exports and encourage domestic recycling. Morgan hopes that a consultation this year will address these critical changes.
Government Initiatives and Policy Moves
The UK Department for Environment, Food and Rural Affairs (DEFRA) reports that £10 billion will fund new sorting and processing facilities. The Deposit Return Scheme, launching in October 2027, will encourage consumers to return bottles and cans, creating higher-quality recycling material. The Circular Economy Taskforce will oversee reforms designed to reduce export dependence.
“Our collection and packaging reforms will support UK recycling and reduce waste exports,” says a DEFRA spokesperson, stressing that export controls remain strict under current legislation.
Meanwhile, Virginia Janssens, managing director at Plastics Europe, warns that businesses will move production where it is cheapest. “If large investments happen outside Europe, the industry will not return, threatening our value chain and forcing more landfill use,” she says.
Glimmers of Hope
Despite struggles, some companies thrive. Biffa acquired bottle manufacturer Esterform, which uses recycled PET. Enviroo secured £58 million to build a new facility in northwest England, converting PET drink bottles into granulate suitable for food packaging. Scheduled to open in 2026, the plant will process 35,000 tonnes of plastic annually.
Detta believes specialization and focusing on core recycling problems will ensure success. “I focus on real, pressing issues, not just flashy technology,” he says. Plastic Energy, with plants in Spain, France, and the Netherlands, converts plastic waste into pyrolysis oil for food and medical-grade plastics.
CEO Ian Temperton expects an undersupply of recycled plastic as European recycled content targets rise. By 2040, all plastic drinks bottles must contain at least 65% recycled material. “We continue to enhance technology and prepare for the market’s future needs,” he says.
