Indorama Ventures Public Company Limited (IVL; Bangkok, Thailand; www.indoramaventures.com) has entered into an agreement to acquire a polyethylene terephthalate (PET) recycling facility from Custom Polymers PET in Alabama, U.S. The facility consists of two production lines; Recycled Polyethylene Terephthalate (rPET) Flake and food-grade rPET Pellets, with a combined capacity of 31,000 metric tons per year (m.t./yr).
A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth. This acquisition is strategically in line with the Company’s objectives of long-term sustainability. The acquisition of this recycling facility from Custom Polymers will allow IVL to have a secured supply of rPET Flake and food-grade100% rPET Pellets in US, and this will open up new opportunities to meet the ever increasing food grade rPET demand for more sustainable packaging solutions by major brand owners. The proximity of this recycling facility to IVL’s existing polyester manufacturing entities in U.S., synergies of management and supply chain are expected to benefit Indorama Ventures’ ability to serve customers in North America.
Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures said, “At Indorama Ventures, we intend 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 our industry’s sustainable and profitable business. We strongly feel that this initiative will contribute as an attractive platform for strong future growth in our commitment to sustainable recycling business with the potential to expand further with the support of our stakeholders.”