South Wales recycling company hit with £64,000 fine over fire
SL Recycling Limited was sentenced at Newport Crown Court on Thursday, 26 June 2025, after previously pleading guilty to three offences brought by Natural Resources Wales (NRW) under the Environmental Permitting Regulations 2016.
The case related to a fire that broke out on 1 September 2021 at the company's site on Penallta Industrial Estate in the Caerphilly borough, after a lithium-ion battery exploded during the crushing of a vehicle shell.
The blaze spread quickly through the main scrap metal stockpile, igniting around 150 tonnes of mixed materials including plastics, foam, lead batteries, electrical waste, gas cylinders, and machinery. It took firefighters from South Wales Fire and Rescue Service until the following afternoon to bring the fire under control.
Permit failures
The court found that SL Recycling had failed to follow key requirements of its Fire Prevention Plan and Environmental Management Plan, including:
Allowing waste stockpiles to exceed the 4-metre height limit
Failing to keep piles sufficiently separated
Not providing an adequate f ire quarantine area
Failing to minimise pollution risks as set out in its permit
NRW officers had previously warned the company about excessive stockpile height during a February 2021 site visit.
The fire's intensity and the excessive volume of material made it difficult to contain, with inadequate space on-site to isolate and extinguish burning waste.
Environmental impact
Efforts to extinguish the fire overwhelmed the site's drainage system, resulting in contaminated water, including waste oil, flowing off-site into nearby watercourses.
The pollution had a significant impact on the Nant Cylla and River Rhymney confluence, with effects observed along a 2.3km stretch. NRW identified:
Strong odours of oil and fuel
Foam and staining along the riverbank
High levels of suspended solids in the water
At least 175 dead fish, including trout and bullhead, confirmed through a biological and fisheries survey
Sentence
SL Recycling Limited was fined £64,000 for Count 1, with no additional penalties for Counts 2 and 3. The company was also ordered to pay £30,000 in prosecution costs and a £190 victim surcharge.
After the hearing, David Griffiths, industry and waste team leader at NRW said: 'Environmental regulations are in place for a reason.
'Failure to comply with the legal requirements of an environmental permit is a serious offence that can damage the environment, undermine those who adhere to the rules and cause misery for local communities.
'This case demonstrates what can happen when operators don't adhere to the conditions of their permits. Their actions to disregard our warnings about the height of the stockpile led to this fire, which ultimately led to significant environmental impacts.
'We welcome the sentence handed down today and hope that it serves as a strong reminder to waste operators that any disregard for environmental regulations will not be tolerated.'
The level of fine for environmental offences is set by the courts and is based on the level of harm, culpability, and the financial means of the defendants.
Anyone who witnesses an environmental incident can report it to NRW by calling 0300 065 3000 or using the online reporting tool at Natural Resources Wales.
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