Closed Loop Recycling plans to invest £12m, in a bid to double its capacity and create 100 new jobs.
This is being done by the plastic bottle recycling plant as part of a series of government-backed announcements aiming to showcase low-carbon investment in the UK.
Construction of this plant, which when completed diverts 100,000 tons of carbon emissions and leads to increased food-grade HDPE, is likely to begin in early 2013.
Closed Loop Recycling has reportedly recycled more than 100,000 tons of plastic bottles at its Dagenham facility since it opened in 2008.
UK Deputy Prime Minister Nick Clegg, speaking on government's investments for green plants, said UK was the sixth largest market in low carbon goods and environmental services.
"We're leading from the front. Together we find ourselves at the vanguard of one of the most dynamic, most innovative, most important industries of our time; an industry whose breakthroughs and endeavours will shape our societies for years to come; an industry that will help us build a more stable, more sustainable, more prosperous world," Clegg added.
