Investment group, Euro Capital, has bought troubled plastics reprocessor, Closed Loop Recycling.
The Dubai-based company has purchased Closed Loop, which reportedly went into administration last week, for an undisclosed sum. The business will now be known as Euro Closed Loop Recycling Ltd.
The sale to Euro Capital will reportedly see all of Closed Loop’s 130 staff, as well as its CEO, Chris Dow, keep their jobs with the Dagenham-based plastic bottle manufacturer.
“We are delighted that Euro Cap has come on board,” commented Dow. The number one priority for us and our investors is to continue to support the Dairy Roadmap in the UK. In the last eight weeks, the industry has shown real commitment to recycled HDPE content. This deal offers the potential for the supply chain to meet this obligation of 30 percent recycled content, but this will only happen if the retailers enforce this through the whole of the supply chain.”
Euro Captial, which has invested in some 100 companies since 2005 across a diverse range of sectors, has pledged a programme of ongoing investment support to Closed Loop in order to support the business.
Closed Loop has publicly vocalised its turmoil in recent times, with the drop in oil prices having a knock-on affect on its business, with manufacturers choosing virgin plastics over recycled. Dow said earlier this year that the company was “the collateral damage” from the situation.