Indorama Ventures Public Co. Ltd (IVL) has acquired French plastics recycler Sorepla Technologie SA, as part of its long-term sustainability objectives.
The Thai chemicals supplier said the purchase was carried out through its PET recycling business, Wellman International Ltd, and includes Sorepla subsidiary Société de Recyclage de Matières Plastiques (Sorepla Industrie) SA in France.
Financial details of the transaction were not disclosed.
Sorepla is a leading plastics recycler in Europe with a capacity to produce 52,000 tonnes of recycled plastics per annum.
Based in Neufchâteau, France, Sorepla was founded in 1991 and has production lines for recycled PET, recycled high density polyethylene (rHDPE) and food grade pellets.
In a 30 July statement, Indorama said the acquisition improved its position as a recycler in Europe, helping the company cater for the increasing demand for recycled PET (rPET).
IVL already has a strong recycling presence in France through its subsidiary, Wellman France Recyclage in Verdun.
The company expects Sorepla's proximity to its existing recycling business to create synergies of management and supply chain.
rPET resin is widely used for food and beverage packaging as well as fibre applications in Europe.
According to IVL, demand for food-grade rPET in Western Europe is set to grow at a CAGR of 7% from 2018-2021, and is currently exceeding supply.
“We believe that the recycling of PET packaging is one of the most responsible solutions for the preservation of resources and the reduction of PET containers in landfills,” said Aloke Lohia, Group CEO of Indorama Ventures commenting on the acquisition.
With a comprehensive European network for bottle sourcing and good supply chain efficiencies, IVL says the acquisition will help future growth in the sustainable recycling business.
Mechanical recycling is not the only solution IVL is exploring. Earlier this year, Indorama entered into a three-party project with consumer goods giant Unilever and start-up company Ioniqa to pioneer a new technology which converts PET waste back into virgin grade material for use in food packaging.
Eindhoven, Netherlands-based Ioniqa has developed a proprietary technology that is able to convert any PET waste back into transparent virgin grade material, a technology that the three partnering companies believe will ‘transform' the industry.