The Packaging and Films Association (PAFA) has given its seal of approval to a recycling grant awarded to a Redcar-based plant.
Specialist recycling firm WES Greenstar was awarded funding from the Waste & Resources Action Programme (WRAP) after successfully developing a facility that is capable of recycling high volumes of mixed plastics.
PAFA chief executive Barry Turner told Plastics and Rubber Weekly it was a "major boost" for the mixed plastics recycling industry.
The project is expected to create up to 20 new jobs as well as having a knock-on effect for the wider bulk material handling industry.
Specialist machinery utilised in plastic recycling facilities include chain and flight conveyors and screw bin dischargers, which can be used to provide a low cost, versatile bulk bin discharge facility for handling a range of recycled products.
Mr Turner added: "I hope the grant will herald a turnaround in UK recycling practice.
"Lightweight plastic packaging has largely been ignored, despite its recyclability."
Once operational in early 2011, the Redcar plant will process an annual supply of around 20,000 tonnes of mixed plastics, such as meat trays, yoghurt pots and margarine tubs.