Chemical recycler Plastic Energy has moved out of administration with the confirmation of a new ownership structure and the return of founder Carlos Monreal as chief executive.
The UK-based company entered administration in May due to cash flow challenges, resulting in insufficient liquidity within the group to execute a turnaround plan.
In a statement, Plastic Energy said the transition marks the start of a new chapter for the company, led by Monreal’s ‘entrepreneurial vision, technical expertise and over two decades of industry knowledge’.
Plastic Energy’s proprietary Tac technology will remain at the core of the business, with operations and development continuing across Europe and at research labs at Loughborough University in the UK, it added.
The company uses a pyrolysis process that converts end-of-life plastics into feedstock, helping replace fossil fuels in the production of virgin plastics while diverting plastics waste from landfill and incineration.
Industrial-scale operation
Operating at industrial scale for more than 10 years, the chemical recycling technology has processed 40,000 tonnes of hard-to-recycle plastics to date.
This, said the company, has helped it underpin partnerships with leading petrochemical companies, and achieve industry-leading regulatory certifications.
At the time of going into administration, the business employed 200 people across the UK, Singapore, Malaysia, Spain, France, and remotely. It currently has two chemical recycling plants in Spain that are in continuous operation.
Having founded Plastic Energy in 2011, Monreal stepped down as chief executive in 2024 and became company chairman.
In 2024, Plastic Energy generated revenue of £1.67 million ($2.25m). However, its pre-tax loss for that year amounted to more than £21.3m ($28.7m).
A challenging sector
The wider chemical recycling sector has faced a challenging investment environment, shaped by volatile virgin polymer economics and prolonged regulatory uncertainty.
Despite these challenges, Plastic Energy claimed it was a ‘decisive moment’ for the industry in which the core technology has matured, industrial capacity has been proven, and market demand continues to grow.
Policymakers, particularly those in Europe, must now match the commitment made by the private sector by providing clear, stable and investment-friendly regulation in support and recognition of companies that have invested early to close the loop on the circular economy of plastics, the company added.
“This is the start of an exciting new chapter for Plastic Energy, with our focus being on operational excellence, disciplined growth, profitability and delivering long-term value to customers, partners and shareholders,” Monreal said.
“Returning as chief executive of the company I founded is both a personal commitment and a vote of confidence in what we have built.”
Hard-to-recycle plastics
The demand for a solution to the issue of hard-to-recycle plastics is greater now than ever, Monreal maintained. Since 2016 as an industry-leader, Plastic Energy has demonstrated that Tac technology is capable of effectively managing this waste stream at scale, he pointed out.
“We will continue advancing our technology, increasing efficiency of our existing industrial operations, expanding strategic partnerships and accelerating the deployment of chemical recycling globally,” Monreal added.
“Regulation must now keep pace with the commitment made by the private sector, creating a favourable environment for those seeking to scale circular solutions and support circular ambitions such as those laid out in the EU’s Packaging and Packaging Waste Regulation.”
