AO Recycling has built a name not just for taking in your old appliances but for doing it the right way, from collection to recycling to circular innovation. But let’s start from the beginning...
AO
[GD] How did AO enter the recycling space?
[DW] It began around 2015, when AO acquired The Recycling Group, a small but fast-growing family business founded by Rob and John Sant. At the time, AO was The Recycling Group’s biggest customer, but it knew that if it wanted to continue growing, it needed confidence in how recycling was being managed. For AO, brand trust is everything. So, we asked ourselves: how do we ensure recycling is done properly and supports our vertically integrated model?
When a customer orders an appliance online, it’s picked in our warehouse in Crewe, delivered to a local outbase, and then brought to their door as early as 7 AM the next day. Meanwhile, we collect their old appliance and bring them back through the same logistics network. Our trailers need to be turned around quickly to keep operations running. This means having control over the recycling process isn’t just a sustainability thing; it’s a logistical necessity.
However, recycling infrastructure is expensive. Setting up facilities like our fridge recycling plant or plastics processing site required tens of millions in capital, which wasn’t viable for a family-run business. That’s when AO stepped in to support.
[GD] So, why did AO invest in a dedicated plastics recycling facility?
[DW] Historically, most of the mixed plastics from fridges were exported – mainly to Asia – for further sorting. But as legislation changed and countries like China stopped accepting these materials, UK recyclers had to find a new solution. AO saw value in plastics and closing the loop, with one of its guiding principles being, “Make decisions that make your mum proud.”
It sounds simple, but it’s deeply rooted in how we work. Whether it’s choosing not to ship waste overseas or investing in better separation technology, we try to do the right thing even if it’s hard or expensive. It’s not always perfect, but this guiding principle keeps us accountable. Processing plastics in-house unlocked great potential both at the beginning and in the future, as we incorporate these plastics back into appliances for sale on AO.com.
[GD] What were some of the challenges along the way?
[DW] Opening the plant was like an R&D project in motion. No one on our team had deep experience in plastics recycling, so we were learning on the job. Equipment didn’t always work as expected. We had issues with dust, contamination, and even materials that were supposed to float but didn’t. Imagine doing this while entering a global pandemic – it was a real test.
Now, the plant is operational, producing high-purity plastic regrind and pellets. We’re the only UK retailer that wholly owns both a fridge and a plastics recycling facility. It gives us better control over input materials and lets us supply quality recycled plastic back into the market or even into new appliances, closing the loop.
We wanted to learn everything about plastic before making any further investments. Then, we decided to upgrade the site with lab-grade testing and extrusion capabilities. We don’t just sort plastic; we blend, pelletise and test it rigorously, including colour, impact strength and REACH compliance. We’re working with customers to tailor plastic characteristics for specific uses, even experimenting with brighteners and other additives.
Our North Star is to take plastic from an old fridge, process it and feed it into a new one. We’re not quite there yet, but we’re well on our way. The fact that we collect the appliances, shred and sort the plastics, and can produce usable pellets gives us an edge. There’s huge potential in building a closed-loop system, and we’re getting closer every year.
[GD] I know AO also repairs and refurbishes old appliances. How important is this to the business?
[DW] It’s important, but it accounts for a small percentage. About 3-4% of the 1.25 million appliances we handle annually are refurbished, and they’re “scrap” appliances, not customer returns. The rest are recycled.
Reuse has challenges, including cosmetic condition, integration in fitted kitchens and consumer expectations. Many reused items go to businesses or cost-sensitive customers, but they must be safe, functional and meet high standards. Plus, re-gassing fridges and full repairs are not always economically viable, so they don’t bring great profits. We still do it because we recognise it’s the right thing to do.
We’re WEEELABEX accredited, meaning every appliance repaired has a full audit trail and is sold locally, B2B, with a warranty.
[GD] The plant conforms with ISO 14001 and ISO 9001 standards, as well as being an Environment Agency Approved Authorised Treatment facility. What does this mean to you personally and to the business?
[DW] It’s really important to test ourselves against external audit standards, retail brands and customer expectations – both in recycling and on AO.com. We’re also WEEELABEX and RecyClass-certified, as well as having been awarded the ROSPA Gold Award for eight consecutive years. These recognitions are key to maintaining and driving up standards to exceed the legal requirements.
[GD] What’s next for AO Recycling?
[DW] A few things. As AO’s Five Star membership programme grows, we expect to collect even more appliances. This means scaling capacity and improving efficiency. We’re also building out the market for our recycled plastics, both domestically and through distributors.
We’re developing new blends, investing in tech and deepening partnerships with manufacturers. We want to do all this while staying true to our values: sustainable, responsible and always customer-focused. We’re progressing towards our North Star, but we want to ensure we keep providing the best service to our customers with vertical integration.
Recycling is a constant evolution of technology, knowledge and mindset. We didn’t know what we didn’t know when we started. Now we do. And we’re using that to build something better for our customers and the environment – something our mums would be proud of.