CCE has committed to a ten-year joint venture deal with ECO Plastics to develop its existing site in Hemswell and guarantee a 40,000 tonne annual supply of recycled food-grade PET to the drinks giant.
ECO Plastics will provide a further £10M to fund the development, which will open next year with the creation of up to 30 new jobs.
The new reprocessing capacity will double the UK’s current production of food grade PET, where two thirds of UK plastic packaging is currently exported for reprocessing, and CCE sources most of its recycled food-grade PET from mainland Europe.
CCE hopes to use 25% recycled plastic in all of its bottles by 2012, and Great Britain md Simon Baldry said: “Our investment in this project with ECO Plastics will start to address the recycling challenges in this country. British PET bottles will be recycled for re-use in packaging that will be sold from the shelves of British retailers.”