We could soon be buying milk in bottles that are in their second or third incarnation, if plans to build a state-of-the-art recycling plant get the go-ahead.

The factory would be capable of processing up to 13,000 tonnes of used HDPE plastic bottles a year - equivalent to about 250 million one-litre bottles - and turning them back into pellets of food-grade plastic.

Scheduled to start processing bottles in December 2007, it would be the first 'closed loop' recycling scheme for HDPE in the world, according to project leader Waste and Resources Action Programme (WRAP).

Other existing schemes are only capable of recycling other sorts of plastic or turning them into other products altogether. The technology has been three years in the making, as scientists tried to find a way around the problem posed by the inks and adhesive used on bottles' labels.

Plastics technical manager Paul Davidson said he wanted companies and dairies to make bigger efforts to eliminate these problematic parts of the bottle. At present, bottles can only contain about 30% recycled material to keep their appearance acceptable to shoppers.

WRAP is now assessing bids to build the plant, and Davidson said the contracts should be agreed by Christmas. There are high hopes that a number of the plants could eventually be built in the UK.

A spokeswoman for

Dairy Farmers of Britain welcomed the news: "We would support any venture of this nature that is good for the environment."

Dairy Crest, which had a hand in developing the new technology, said it was committed to recycling more of its plastic packaging. A spokesman said: "Our aim is to develop a milk bottle partly made from recycled material that does not compromise on product quality for our consumers."

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