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AWS Eco Plastics has announced a major contract with Artenius PET Packaging Europe (APPE), a subsidiary of La Seda De Barcelona, one of Europe's leading PET packaging companies.

AWS is to provide APPE with a minimum of 13,000 tons annually of recycled plastic pellets for the production of bottles for carbonated beverages. This is a major step in APPE's drive to increase the recycled content of PET bottles.

This is the first major offtake contract signed to support the £14m capital investment programme being carried out at AWS Eco Plastics' bottle processing plant in Lincolnshire.

On completion (end of this year), the plant will be the largest of its kind in the world, with processing capacity set to increase from 25,000 tpa to 100,000 tpa.

Environmental considerations While capex has been concentrated on the process, the company has also been mindful to minimise the use of natural resources. For example, there has been substantial spend on a closed-loop water processing system capable of recycling up to 15 cubic metres an hour of water back to a fresh state to be reused in the process, which is the first of its kind to be used in a plastic bottle processing plant.

Chief Executive Jonathan Short, commenting on the APPE contract, said: "We're delighted to win this contract, which is the culmination of months of negotiation with APPE.

"It's clear APPE has chosen to work with AWS, as we have clearly demonstrated the supply of material available to us and that the capex programme undertaken will result in product to a standard required by APPE. Like ourselves, APPE have set their stall out to be market leader in their field and we look forward to working together to achieve these goals."

Both companies are currently discussing the next stage of contract to increase available tonnage.