Yes Recycling, which employs 60 people, has been unable to pay its debts after suffering cashflow problems linked to operating under capacity.

Administrators Grant Thornton are now seeking a buyer who can retain the business and staffing.

The state-of-the-art plant is based within Whitehill Industrial Estate in Glenrothes and operates a 15,000-tonne per annum plastics recycling facility.

It began production in September 2022, carrying out recycling of mixed plastics, both 2D and 3D.

It specialises in turning hard-to-recycle flexible food packaging such as crisp packets and chocolate wrappers into plastic flakes, pellets and a new product called ecosheet, which can be used in the construction and agriculture industries.

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Julie Tait, restructuring director at Grant Thornton, said: "While the business has invested heavily in state-of-the-art recycling equipment, it had not yet been able to operate at full capacity and this has resulted in cashflow challenges in recent weeks.

"The company was unable to pay its debts as they fell due resulting in our appointment as joint administrators.

"This is a disappointing outcome for all those associated with the company, and our immediate priority is to support the company's 60 employees while we assess the company's financial position and seek a buyer for its business and/or assets."

Parent company Yes Recycling Group, which is based in Buckinghamshire, is unaffected.