SET-listed Indorama Ventures Plc (IVL) has acquired Green Fiber International Inc (GFI), a recycling company in the US.
Located in Fontana, California, the facility produces recycled polyethylene terephthalate (rPET) flakes at a combined capacity of 40,000 tonnes per year.
GFI has offered high-quality rPET bottle flakes for food contact to the US West Coast's packaging market since 2018.
This acquisition extends IVL's recycled flake supply chain to the West Coast, allowing the company to further support customers in the water and soft drinks industry to ensure that PET bottles are recycled and put to further use in creation of a circular economy, said Yashovardhan Lohia, IVL's executive director and chief recycling officer.
"The acquisition is strategically in line with IVL's long-term sustainability objectives and part of the company's stated plan to invest significantly in recycling over the next five years," said Mr Lohia.
"The proximity of the facility to a large supply of recovered PET bottles on the West Coast of the US will create new opportunities to meet the increasing demand for rPET in more sustainable packaging solutions."
He said IVL supports the circular economy and environmental sustainability globally by pursuing the right opportunities to fill gaps that are intrinsic to a sustainable future.
"This acquisition will contribute to profitable future growth in the sustainable recycling business with the potential to expand further," said Mr Lohia.
IVL is a global petrochemicals producer with a manufacturing footprint across Africa, Asia, Europe and the Americas.
The company's portfolio comprises necessities and high value-added categories of polymers, fibres and packaging, selectively integrated with self-manufactured ethylene oxide/glycols and purified terephthalic acid.