Singapore-based investment management company Circulate Capital has invested an undisclosed amount in eB Capital, the owner of Brazilian bottle-to-bottle recyclers Global PET Reciclagem and Green PCR.
The investment will integrate the operations of the two recyclers into a new company called Cirklo. The combined capacity of Global PET Reciclagem and Green PCR will make Cirklo the largest independent recycler in Brazil, with capacity to recycle more than 4 billion PET bottles annually, Circulate Capital said in a statement.
Cirklo will leverage the partnership to mobilise resources for expanding its operations in the Southeast and Northeast regions of Brazil, where it already operates two plants in the states of São Paulo and Paraíba. The company aims to divert over 1.3 million tonnes of plastic waste from landfills over the next decade.
Part of the funding for Cirklo’s expansion will come from Circulate Capital’s Latin America and Caribbean $70 million initiative. The programme was launched in 2023 with the support of companies including Chevron Phillips Chemical, Danone, Dow, Mondelēz International, and Unilever.
“We are proud to officially enter Brazil — such an exciting and important market for the region — with this investment in Cirklo, a solid company with exceptional growth potential,” said Rob Kaplan, founder and CEO of Circulate Capital.
Of the 4,327,468 tonnes of post-consumer plastic consumed in 2022 in Brazil, the country mechanically recycled 1,106,368 tonnes, or 25.6%, 2.2 percentage points more than in the year before. Brazil produced over 1,1 million tonnes of post-consumer resign (PCR), with rPET accounting for 38%, mainly water and soft drink bottles.
“This investment marks our deep commitment to Latin America, aiming to promote significant environmental and socio-economic advancements through the circular economy,” Kaplan said. “In addition to capital, we help our portfolio companies scale through mentorship, technical support, and connections with our network of multinational corporate partners, ensuring their long-term success.”
This is Circulate Capital’s second investment in Latin America, following its July 2024 investment in Polyrec, a Colombian recycler of flexible plastics.