A Japan-based banking company is investing $10 million into a fund designed to advance circular plastics projects.
Sumitomo Mitsui Banking Corp., with multinational operations, is placing the money with the Closed Loop Circular Plastics Fund, which focuses on polyethylene, polypropylene and flexible plastics. The fund provides debt and equity financing aimed at attracting additional investments into recovery and recycling solutions and infrastructure. The fund is part of Closed Loop Partners, a New York-based firm that invests in circular economy projects.
The fund was launched in 2021 and has already made several investments, including the Myplas USA project that will recycle plastics film in Minnesota.
"SMBC is committed to sustainability, while identifying partnerships that leverage our expertise and strong footprint in the Japan and Asia Pacific region. Our team is proud to partner in the Closed Loop Circular Plastics Fund's catalytic, impact-first effort to accelerate infrastructure, equipment, municipal services, as well as innovation and enabling technologies related to flexible films and specific plastic types," said Masayuki Takanashi, group chief sustainability officer of parent firm Sumitomo Mitsui Financial Group Inc.
Closed Loop said other investors in the Circular Plastics Fund include Dow, LyondellBasell Industries, Nova Chemicals, Charter Next Generation, Chevron Phillips Chemical, SK Geo Centric Co. and Sealed Air.