JOBS are being axed at a £50m waste recycling plant on Tyneside after bosses announced its decision to mothball the site.
Brothers William and Michael Thompson set up Graphite Resources in 2002 and launched the EcoParc autoclaving plant in October 2010.
The facility heats and sterilises waste at 160C, allowing it to be used for building or biofuel rather than dumped in landfill.
But now around 43 people are expected to lose their jobs following the company’s decision to mothball the facility at Derwenthaugh, near the Scotswood Bridge.
Bosses confirmed that 10 workers employed with Graphite Resources have been made redundant, while a period of consultation has begun with 33 employees on site employed by px group.
Executive director William, who left the family haulage and demolition firm, Thompsons of Prudhoe in 2002, to launch Graphite Resources, said: “What we are doing is taking the plant off-line. To increase the recovery of recycling we need to improve the operational consistency.
“We couldn’t fund and carry everyone through the off-line period and we had to make staff redundant.” He added: “There are a number of issues we need to address to improve the operational reliability. We had several issues with the plant being so novel.
“There was no single issue which caused us to turn it offline.
“We would like to thank the team and contractors for their efforts, support and loyalty they have given.”