Market and product

UK-based polyethylene terephthalate recycler Ecotech London is undergoing liquidation, after being placed under administration.

"On May 31, we went into administration. We tried working out something," which did not come to fruition, so we are "now going into liquidation," Javed Mawji, the CEO of Ecotech London said.

Ecotech London has its PET production facility in Rainham, Greater London. The facility had a production capacity of 1,300 mt/month (15,600 mt/year), after an expansion by 30% earlier this year from 1,000 mt/month (12,000 mt/year).

Major PET recycler Euro Closed Loop was placed under administration last year.

British PET recyclers were at a disadvantage to their European counterparts due to the mixed collection system in place within the UK, which pushed their cost base higher due to lower yields of recyclable PET from the bales, market participants said.

With extremely difficult economics, investors had lately kept away from the British recycling industry, Ecotech's CEO said.