Cedo Recycling, a subsidiary of plastic household goods supplier Cedo, has announced the impending closure of its recycling facility in Geleen, Netherlands, after four decades of operation. The company has officially informed its 64 employees that operations at the site will be phased out later this year. According to Cedo Recycling, this decision stems from persistent market difficulties, increasing operational costs, and heightened regulatory demands, all of which have affected the site's long-term sustainability. At the time of publication, the company was unavailable for further comment.

The Geleen facility has an annual capacity to process over 80,000 tonnes of packaging film into regranulate. Sourced mainly from households in the Netherlands and neighboring countries, the material undergoes sorting, shredding, washing, and extrusion at the plant. The recycled plastic is subsequently used in the production of garbage bags at Cedo Group facilities in Poland and the United Kingdom. In the coming weeks, Cedo Recycling will engage with employee representatives and trade unions to discuss the next steps.

“A final decision will be made in due course. Cedo remains committed to ensuring a responsible transition and supporting employees through this process,” the company stated. Despite the closure, Cedo reaffirmed its dedication to sustainability and pledged to continue its recycling initiatives at other sites across Europe.

Until recently, Cedo had been expanding its plastic recycling operations. Last summer, the company acquired Vinatic, a leading flexible plastic recycler in Vietnam. In December, it also completed the acquisition of Plasta Group, a Lithuania-based company recognized as one of Europe’s largest polyethylene recyclers. Additionally, Cedo had plans to construct a new factory at the Geleen site in 2025. With these expansions, the company now boasts a combined capacity to recycle more than 200,000 tonnes of plastic waste annually.

The announcement of Cedo Recycling’s closure comes amid a broader crisis in Europe’s plastic recycling industry. Plastics Recyclers Europe (PRE) reported that recycling plant shutdowns are accelerating across the continent, pushing the sector to a critical juncture. According to PRE, domestic plastic recycling production has sharply declined, while increased imports and rising economic pressures have forced many companies to shut down.

The capacity of closed recycling facilities in 2024 has doubled compared to 2023, and the trend is continuing into 2025, affecting businesses of all sizes. In the Netherlands alone, seven plastics recyclers ceased operations in 2024.

“This is a crucial moment,” stated Ton Emans, President of PRE and Group Recycling & Procurement Director at Cedo. “We urge EU policymakers to take immediate and decisive action, including implementing stricter import controls and enforcing existing regulations. It is vital to prevent the influx of non-compliant materials that fail to meet EU sustainability and safety standards.”

Emans emphasized that these measures are essential for the industry’s survival, noting that the sector has already invested €5 billion between 2020 and 2023 to meet mandatory recycling targets.