Cable said the recycler was an example of companies that are stimulating demand, generating jobs and building the infrastructure for the long term development of the green economy.
Closed Loop claims to be the first recycler in the world to recycle both PET and HDPE plastic bottles into food grade material for new food and drink packaging, and has implemented a major £12m investment that it sas will make Closed Loop Recycling the biggest recycler of milk bottles in the world.
It will increase capacity at the Dagenham-based plant to 55,000 tonnes per annum, creating the most advanced plastics purification facility in the UK and diverting a further 30,000 tonnes of carbon emissions in the process.
The company employs over 200 people and the expansion will increase its work force by a quarter.
Business Secretary Vince Cable said the investment was the sort of project which can support the UK's transition to a green economy.
"This type of success story will continue to provide confidence for future investment and underpin continued economic growth. Supporting robust green companies will lock in green prosperity for the long term and lock carbon out."
Closed Loop Recycling's Chief Executive Chris Dow, added: "Recycled milk and water bottles are a massive win for the circular economy. We discussed with the Secretary of State and his team how we can provide economic drivers to reprocess these valuable resources in the UK, rather than being exported abroad for recycling. We can then work to influence recycling behaviour across the supply chain, from consumers to brands, in order to increase collection rates."
