Biffa closes UK recycling plant amid market, regulatory challenges

UK – Biffa, a leading waste management company, has permanently shuttered its Washington, Sunderland recycling facility. 

According to the company, the closure, finalised in February 2025 after being mothballed in June 2024, was driven by unfavourable market conditions and regulatory uncertainties impacting the recycling of high-density polyethene (HDPE) and polypropylene (PP) flakes.

“Domestic, regional, and global conditions played roles in the decision,” the spokesperson stated. 

“The global economic climate, high regional power and labor costs, and domestic regulatory concerns are currently not conducive to UK recycling.”

The facility, which processed 39,000 tons of plastic annually, employed around 80 workers and handled items like detergent bottles and margarine tubs.

Biffa highlighted that weak economic conditions post-COVID have led to a surplus of cheap virgin polymers, with producers resorting to aggressive pricing to maintain market share.

“This environment is very challenging for recyclers who need to compete with low prices,” the spokesperson explained, noting that cheap imported recycled materials from Asia further undermine UK recyclers. 

The company has redirected processing to its Redcar facility, which, along with plants in Seaham and Sherburn, continues to support the UK’s circular economy.

In a statement, Biffa urged the UK government to phase out exports of unprocessed plastic waste, arguing that such exports send jobs and raw materials abroad while undermining domestic recycling efforts. 

“Exporting unprocessed plastic waste fuels a race to the bottom,” the spokesperson said. Biffa also called for raising the Plastic Packaging Tax threshold from 30% to 50% recycled content by 2030 and cracking down on non-recycled materials mislabeled as recycled.

Roger Wright, Biffa’s waste strategy and packaging manager, emphasized at the Environmental Packaging Summit 2025 that the company is investing in infrastructure to align with evolving regulations, such as mandatory household material collections. 

“Recycling remains a core part of our strategy for years to come,” Wright affirmed

In July 2025, Veolia announced the closure of two recycling plants in Germany due to similar market pressures, signaling broader challenges across Europe’s recycling sector. 

These closures highlight the urgent need for policy reforms to enhance domestic recycling capacity and reduce reliance on exports.

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