Reconomy Invests $26.6 Million in UK Plastic Recycling Plant

London-based resource management company Reconomy has announced plans to open a large-scale plastic recycling facility in Corby, marking a significant investment in the United Kingdom’s domestic recycling infrastructure. The project, developed under its Eurokey brand, represents an investment of approximately $26.6 million and is aimed at strengthening closed-loop recycling for retail and supermarket supply chains.

The facility, spanning around 138,000 square feet, is expected to become one of the UK’s largest dedicated plastic recycling plants. Once operational in the second half of 2026, it will have the capacity to process up to 38,000 metric tonnes of plastic annually. The site will handle multiple grades of plastic waste that have been pre-sorted at Eurokey’s nearby Kettering facility, converting them into recycled plastic pellets suitable for manufacturing new packaging materials. The development is also expected to generate more than 30 jobs, contributing to the local economy.

The recycling operation will rely on mechanical processing techniques, including sorting, washing, and pelletizing plastic waste into reusable raw materials. By focusing on producing high-quality recycled polymers for packaging applications, the plant is designed to support closed-loop systems in which plastic used by retailers can be collected, recycled, and reintroduced into new packaging formats.

The investment comes amid growing concern over the UK’s reliance on exporting plastic waste due to insufficient domestic recycling capacity. Industry stakeholders have increasingly called for expanded infrastructure to process materials locally, particularly as global restrictions on waste exports tighten and sustainability expectations rise among consumers and regulators. Building domestic capability is seen as critical to improving recycling rates and reducing environmental impact.

Strategically, the Corby facility will strengthen Reconomy’s vertically integrated recycling model by linking closely with its Kettering sorting site, located less than 10 miles away. This proximity is expected to reduce transportation costs, lower associated carbon emissions, and minimize dependence on external processing markets. It also positions the company to better serve supermarkets and retailers seeking consistent supplies of recycled materials to meet sustainability commitments.

Regulatory pressures and corporate targets are expected to further accelerate investment in UK recycling infrastructure. As policymakers push for higher recycling rates and reduced reliance on virgin plastics, facilities capable of delivering high-quality recycled outputs at scale are likely to play an increasingly important role in the transition to a circular plastics economy.

Source: Reconomy

SUNSHINE Spotlight: Reconomy’s new Corby facility highlights the UK’s push to build domestic recycling capacity and reduce reliance on plastic waste exports while supporting closed-loop packaging systems.