IVL buys PET recycling plant
SET-listed Indorama Ventures Plc (IVL), a leading manufacturer of polyester and plastic packaging material, has entered into an acquisition agreement for a PET recycling facility from Custom Polymers PET in Alabama, the US.
The facility consists of two production lines -- recycled polyethylene terephthalate (rPET) flake and food-grade rPET pellets -- with a combined capacity of 31,000 tonnes per year.
Regardless of the fluctuations in the quality of post-consumer feedstock, this recycling facility can offer consistently high-quality recycled PET material that meets customers' specific needs in packaging and fibres.
Aloke Lohia, IVL's chief executive, said the company has made important progress in recycling at multiple locations in Europe, Mexico, Thailand and the US.
A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be the key factors driving market growth in the future.
"The acquisition of this recycling facility will allow IVL to have a secured supply of rPET flake and food-grade 100% rPET pellets in the US, and this will open up new opportunities to meet the ever-increasing food-grade rPET demand with more sustainable packaging solutions by major brand owners," he said.
"The proximity of this recycling facility to IVL's existing polyester manufacturing entities in the US, synergies of management and supply chain are expected to benefit IVL's ability to serve customers in North America."
Mr Lohia said IVL intends to play a key role in promoting the circular economy and environmental sustainability by continuing to pursue the right opportunities to fill gaps that are intrinsic to the industry's sustainable and profitable business.
In a related development, IVL announced its joint venture has received all regulatory clearance required from the US Federal Trade Commission for the proposed joint asset purchase of M&G USA Corporation and its affiliated debtors.
On March 21, IVL, Alpek SAB de CV, and Far Eastern Investment Holding, entered into a joint venture agreement to acquire M&G's Corpus Christi plant through Corpus Christi Polymers LLC.
The acquisition also includes certain M&G intellectual property and a desalination/boiler plant. The Corpus Christi plant will have nominal capacity of 1.1 million and 1.3 million metric tonnes per year of PET and PTA (purified terephthalic acid), respectively.
The three joint venture parties will each receive one-third of the capacity of PTA and PET produced. Each of the partners will procure raw materials independently, while also independently selling and distributing their corresponding PTA and PET.
The plant is the largest in North America and a vertically integrated PTA-PET production facility.
Mr Lohia said the regulatory clearance represents an important milestone and a giant step towards serving the growing market needs of recyclable PET for many years to come.