Vanden Recycling will close its Whittlesey plastics plant amid rising costs, weak demand, and sector-wide pressures challenging Europe’s recycling industry.
Vanden Recycling has officially announced that it will be shutting down its plastics recycling plant in Whittlesey, Peterborough, before the end of this year. The facility, which has been engaged in processing a variety of post-industrial plastics such as PET, PP, and HDPE, is expected to bring its operations to a complete halt by late October.
Kevin Thompson, the company’s Managing Director, explained that the decision was taken after “careful consideration.” He acknowledged that while the Whittlesey site has played an important role within the business, its limited size and lack of scalability meant it could not support the long-term growth ambitions of the company. He further stated that redirecting resources toward Vanden’s core trading business will enable the organisation to focus on areas with stronger growth opportunities and deliver a higher level of service to its most important customers.
The disposal of the plant and its equipment is currently being handled by Benchmark International. Vanden also underlined that the broader operating climate for rigid plastics recycling has become increasingly difficult. Rising energy, transportation, and labour costs have coincided with sluggish downstream markets, making continued operation unsustainable.
Another factor compounding the situation is the prolonged decline in recycled polymer values. These lower prices are heavily influenced by the competitive cost of virgin plastic and the lack of a regulatory framework that strongly encourages the use of recycled materials. According to Vanden, this imbalance has further undermined the financial viability of the Whittlesey facility.
Staff numbers at the site have already been reduced as the company gradually winds down operations. Vanden is currently working with suppliers to secure alternative arrangements for processing materials in order to minimise disruption. Despite the closure, Thompson emphasised that the company remains committed to excellent service delivery and aims to build even stronger global trading partnerships.
The decision to close Whittlesey reflects a broader trend of pressure within the UK and European plastics recycling industry. Plastics Recyclers Europe (PRE) recently issued a stark warning that the sector faces “imminent collapse” due to a combination of falling demand, rising input costs, and tightening regulations. These challenges are forcing many facilities across the continent to close their doors.
In the UK, other high-profile closures highlight the seriousness of the issue. Viridor, for example, shut down its Rochester plastics recycling site earlier this summer, after having already closed its Avonmouth facility in December 2024. Similarly, Biffa announced the closure of its Sunderland plant in July, which had the capacity to process around 39,000 tonnes of PP and HDPE each year.
Meanwhile, the wider recycling market has remained subdued throughout August, with trading volumes and pricing following seasonal patterns but worsened by the wave of facility closures. PET prices, in particular, have softened due to excess material availability and weaker seasonal demand. Across Europe, recyclers are also battling persistently low virgin polymer prices, which continue to erode profit margins and threaten the sector’s stability.
