A Fife recycling company has collapsed into administration, putting 60 jobs at risk.
Yes Recycling (Fife), which operated at Whitehill Industrial Estate in Glenrothes, has been placed in administration, citing cashflow difficulties.
The “pioneering” facility – co-owned by supermarket giant Morrisons – only began production in September 2022.
It was designed to take take low grade plastics including sweet wrappers, crisp packets, salad bags, and non-PET (polyethylene terephthalate) food film.
When these materials enter the site, all of the plastic material is washed and sorted.
It is then broken down and turned into flakes and pellets, which can be used to make new plastic products.
However, the plant – which food firm Nestle invested more than £1.6 million into – never reached full capacity.
The future of its 60 workers is now unclear..
Stuart Preston and Julie Tait, of Grant Thornton UK LLP were appointed administrators.
Julie Tait, restructuring director at Grant Thornton and one of the administrators, said: “While the business has invested heavily in state-of-the-art recycling equipment, it had not yet been able to operate at full capacity and this has resulted in cash flow challenges in recent weeks.
She added: “The company was unable to pay its debts as they fell due, resulting in our appointment as joint administrators.
“This is a disappointing outcome for all those associated with the company.
“Our immediate priority is to support the 60 employees, while we assess the company’s financial position and seek a buyer for its business and/or assets.”
‘Significant operational issues’
A Morrisons spokesperson said the plant had encountered a number of “significant operational issues”.
These meant its cash burn was “significantly ahead of projections”.
The spokesperson added: “In recent weeks the business has urgently sought alternative additional funding which was, very regrettably, unsuccessful.
“We recently learned the lending bank has placed the business into administration..
“We will, of course, assist the administrator in any way we can in the coming weeks.”
The rest of the Yes Recycling Group, based in Buckinghamshire, is not affected.
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