Plastics recycler Entropex, one of the largest in North America, has closed. The Sarnia, Ontario-based company blamed financial challenges caused by the huge decline in oil prices.
Plastics recyclers have been hit hard by the drop in oil prices, which have caused commodity prices to plummet.
“Despite our best efforts to reduce costs, the costs of operating Entropex’s business remain prohibitively high and unsustainable,” said Entropex president Keith Bechard in a statement announcing the company’s 180,000-square-foot facility had ceased manufacturing operations on July 14.
Entropex received $6.3 million in funding in 2009 from Sustainable Development Technology Canada to build a demonstration facility for recovering mixed rigid plastics, Waste Dive reports. Two years later, the company received an additional $4 million in government funding to pilot another new recycling technology.
The company has laid off most of its 155 employees, according to Plastics Recycling Update. A court-appointed receiver said the company will be put up for sale, according to a Sarnia Observer reported.
Bechard told Plastics News that the receiver is considering buyers who could potentially restart the business.