It is not secret that the recycling industry in particular has been suffering from the low oil price, as it struggles with rising competition from cheaper virgin material. Last year saw quite a significant reshuffle in the UK recycling market (see Plasteurope.com of 16.07.2015) and the continued low price of crude, coupled with insufficient incentives to recycle in the UK have claimed yet another victim. In February, materials handling company Summit Systems (Tamworth, Staffordshire / UK; www.summitsystems.co.uk) closed down its Boomerang Plastics (www.boomerangplastics.co.uk) recycling business after just four years of operation.

The closure has resulted in 12 layoffs, a company spokeswoman told Plasteurope.com, although she said that two staff members were able to find new employment at Summit Systems. The company is currently in the process of selling off the plant’s equipment. The ancillary equipment provider’s managing director Mike Jordan said, “We will now be focusing on driving forward our successful new recycling systems business ‘Summit Recycling Systems’, which will design and build MRF [material recycling facilities] and PRF [plastics reclamation facilities] sorting plants.”

Established in 2011, Boomerang Plastics’ main business came from processing used yoghurt pots of Theo Müller Group (Luxembourg; www.muellergroup.com). Its line was capable of separating part-clean plastic pots, yoghurt, printed wrappers, card and foil using state-of-the-art separation technology, cold washing, hot washing, chemical separation and colour picking. Throughput stood at 150-200 t of waste per week, producing material that could be used again in the packaging chain. Following an arson attack in 2014, the company was forced to move its operations to another nearby rented facility. Jordan said the final straw that broke the camel’s back was higher electricity and insurance prices, with the low oil price finally sounding the facility’s death knell.