Biffa closes UK recycling plant amid regulatory uncertainty and waste exports

Biffa, a major UK waste management company, has closed its recycling plant in Washington, Sunderland. The company tells us that challenging market and regulatory conditions are behind the decision. Biffa has also called on the UK Government to cease exporting plastic waste.

“The Washington plant closed in early 2025 amid challenging market conditions for washed high-density PE and PP flakes,” a Biffa spokesperson tells Packaging Insights. 

“Domestic, regional, and global conditions played roles in the decision. The global economic climate, the regional competitive conditions in terms of power and labor costs, and the domestic concerns in the regulatory environment are all currently not conducive to UK recycling, and contributed to this decision.” 

Biffa says its other plastic recycling facilities in Redcar, Seaham, and Sherburn continue to operate as usual, “playing a key role in the UK’s circular economy.”

The company presents a “pivotal” request to the UK Government: “Phase out the export of unprocessed plastic waste so the UK manages its own waste. Exporting unprocessed plastic waste sends jobs, raw materials, and environmental risk abroad, and undermines the UK’s domestic recycling sector, fueling a race to the bottom.”

Unfavorable market conditions

Biffa says that the economic conditions in the UK and continental Europe have remained weak in the post-COVID era, contributing to the closure of the Washington facility.

Biffa’s plastic recycling facilities in Redcar, Seaham, and Sherburn continue to operate as usual.“After a rapid recovery and short boom, chemicals have dropped to the bottom of cycle conditions, resulting in closures of virgin and recycled polymer production facilities.”

The spokesperson explains that in these conditions, Biffa has consolidated its processing “within a smaller number of operationally sustainable facilities with capacity for growth prior to a broader economic recovery.”

“As part of this, the Washington site was mothballed in June 2024 and closed in February 2025, with the processing volume redirected to our recycling facility in Redcar.”

Similarly, Plastics Recyclers Europe told us that the industry faces rising operational costs due to high energy prices, hindering the EU’s competitiveness against cheaper imports.

Bottom of cycle conditions

Biffa elaborates on the cause of low virgin polymer prices and its effects on the viability of plastic recycling in the UK. 

“The current bottom of cycle conditions for chemical manufacturers mean that virgin producers are finding plants under-utilized and their margins eroded. This results in very aggressive pricing to regain share, or decisions to close the virgin polymer plants,” says the company spokesperson.

“Unfortunately, this environment is very challenging for recyclers who need to compete with these low prices. The demand from packaging manufacturers as a whole has not changed dramatically, however, their ability to source cheap imported recycled materials from Asia has had a negative effect on the UK recycling industry.”

UK regulatory environment 

The low prices of imported virgin plastic are challenging UK plastic recyclers’ competitiveness.Policy changes, like EPR or DRS, can play a role in shaping the commercial landscape for recyclers, according to Biffa.

“There is a very real need for more proactive steps to be taken to improve the regulatory environment for recyclers. The effect of the packaging recovery note in exports has a detrimental effect on the local value of recycled material and the requirement for recycled content, as supported by the Plastics Packaging Tax, needs to see progressive increases to drive the use of recycled materials.”

Biffa recognizes the recycling of plastic as a core part of its strategy “for many years to come.”

“We will continue to assess and respond to market conditions to ensure that our facilities are appropriate for the environment and have the flexibility to grow as demand does.”

“As leaders of the UK’s plastics industry, Biffa asks the government to help unlock a significant boost to the UK economy and future-proof supply chains and resources to drive growth.”

To achieve this, Biffa asserts the importance of phasing out exports of plastic waste and of raising the Plastic Packaging Tax threshold progressively to 50% recycled content by 2030 (up from the current 30%).

“Crack down on bogus imports of non-recycled materials passed off as recycled,” the company adds. 

At the Environmental Packaging Summit 2025, Biffa’s waste strategy and packaging manager, Roger Wright, told us that it is investing in infrastructure and supporting consumer compliance in response to the UK’s evolving waste management regulations, such as the upcoming mandatory household material collections.