The firm was given the green light in February for a £15 million plastics recycling plant at Foxcover Distribution Park, in Dawdon, Seaham, a move which would create around 70 jobs.
Biffa said was making use of a 130,000 square foot unit at the park to create a polymer processing plant capable of recycling more than one billion plastics drinks bottles a year.
Construction is expected to start this summer, with the first commissioning trials scheduled for December. Once up and running the 24-hour facility will process three million bottles a day into new food and drink packaging.
Now the company’s chief executive Michael Topham said it is expanding the plant and will be increasing its investment in the site to £27.5 million.
He said: “We are proud of our leading plastics recycling capabilities and are excited at the role we are playing in this area. Biffa Polymers has delivered another strong year of progress and through our industry leading HDPE food grade production plant, 85% of milk bottles in the UK now contain Biffa recycled material.”