A South Wales recycling firm, S L Recycling Limited, has been fined £64,000 following a serious fire at its Penallta Industrial Estate plant in Ystrad Mynach, Caerphilly. The fire, which occurred in September 2021, resulted in extensive environmental damage and highlighted critical failings in the company’s safety and waste management practices.
At a sentencing hearing held on Thursday, 26th June 2025, at Newport Crown Court, the company pleaded guilty to three environmental charges brought by Natural Resources Wales (NRW). The offences fell under the Environmental Permitting (England and Wales) Regulations 2016, and reflected a failure to comply with both a Fire Prevention Plan and an Environmental Management Plan.
The fire began on the 1st September 2021, when a lithium-ion battery exploded during the crushing of a vehicle shell. The explosion triggered a large-scale blaze that rapidly spread to a major scrap metal stockpile. Approximately 150 tonnes of waste, including plastic, foam, electrical items, gas cylinders, and lead batteries, were set alight. Machinery at the plant was also destroyed.
Fire crews from the South Wales Fire and Rescue Service responded to the incident and worked for over 24 hours to contain and extinguish the fire. The intensity of the blaze was exacerbated by the excessive size of the waste stockpile, which exceeded the 4-metre height limit set out in the site’s Fire Prevention Plan.
Earlier in February 2021, NRW officers had raised concerns with the company’s director, Mr. Lewis, warning that the stockpile height posed a serious fire risk. Despite this, the issue remained unaddressed. The court heard that the excessive height not only fueled the fire but also made it more dangerous and difficult for firefighters to manage the blaze.
Additionally, S L Recycling failed to maintain a proper fire quarantine area, which is a designated space required to isolate burning material. According to the Fire Prevention Plan, this area should be able to accommodate at least 50% of the volume of the largest stockpile and be located a minimum of six metres from any other waste. At the Penallta site, the quarantine area was found to be inadequate.
Compounding the issue, the site’s drainage system was overwhelmed by the large volume of water used to extinguish the fire. As a result, contaminated water, including waste oil, ran off the site and polluted nearby watercourses. This led to environmental damage along a 2.3-kilometre stretch of the Nant Cylla and River Rhymney Confluence.
A biological and fisheries survey conducted by NRW officers discovered 175 dead fish, including trout and bullhead. Visible signs of pollution included oily residues, strong fuel odours, foaming, and heavy sediment in the rivers.
While the court imposed a £64,000 fine for the first charge, no separate penalties were issued for the second and third. In addition to the fine, S L Recycling Limited was ordered to pay £30,000 in legal costs and a £190 victim surcharge.
David Griffiths, Industry and Waste Team Leader for Natural Resources Wales, 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 stockpiles 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.”
To report an environmental incident, call 0300 065 3000 or use the online report it form: Natural Resources Wales / Report an incident
Source naturalresources.wales
