Island Plastics closes doors

Island Plastics, which recycled grocery bags and the wrap from hay bales to make plastic lumber, has gone out of business.

The summer of 2002 the company lost $400,000 worth of equipment to a fire and was never able to recover from that loss. It had let its fire insurance lapse because rates had tripled.

The company never had a shortage of raw materials. Farmers dropped off tonnes of silage wrap free of charge. Disposing of it in landfills cost them $45 a tonne.

"I thought it was terrific,"says dairy farmer Alan McIsaac. "I used plastic boards myself. That was awesome when we could recycle."

The company made fence posts, picnic tables, lobster traps, and board walks. The plastic lumber could be cut and nailed like wood, but didn't rot.

With the company gone, 2,000 pounds more plastic a year will be headed for landfills.

Island Plastics owes $80,000 to the Business Development Agency, along with other money to other creditors, and back wages to employees.

If the company can't be sold as a going concern, the government will sell off the equipment to help cover the debts.