A new $30 million film recycling project, heralded because of support from some high-profile backers, has reportedly shut down after just weeks to reorganize operations.
Myplas USA Inc., based in Rogers, Minn., generated plenty of publicity in its runup to launch due thanks to broad-based support, including General Mills Inc., Target Corp., Schwan's Co. and film maker Charter Next Generation.
Consumer products and retail companies, open to criticism by some due to the amount of plastic waste their products and operations create, have viewed the project as a way to close the loop by capturing and recycling flexible packaging waste. Charter Next Generation got involved to create a source of recycled resin the company could use in making new products.
But, now, a local story in the Minneapolis Star Tribune indicates a recent visit to the plant showed no signs of production.
Myplas came to life through MBOLD, a consortium that's an arm of the Minneapolis St. Paul Regional Economic Development Partnership. MBOLD's members include companies, researchers and nonprofit groups.
The Alliance to End Plastic Waste and Closed Loop Partners, two efforts that help support plastic recycling, also provided debt financing.
Efforts to reach Myplas as well as MBOLD were unsuccessful. Closed Loop Partners referred an inquiry to Myplas board Chairman Peter Shippen, who also could not be reached.
Shippen did provide comment to the Minneapolis Star Tribune: "Myplas is committed to the vision of a circular economy for flexible films in the Upper Midwest," Shippen told the newspaper. "To execute this vision, we are currently exploring management and operational changes."
Myplas, a division of Myplas Pty Ltd. of South Africa, opened in Rogers in December with CEO Andrew Pieterse calling it a "very exciting day for Myplas."
"It's been a remarkable journey to help bring this vision to life. ... We are excited for what lies ahead," he said in a statement at the time.
The vision for Myplas in Rogers has not been conservative. The company previously expected to recycle nearly 90 million pounds of plastic per year and eventually employ nearly 200 people. The company also raised the potential to replicate the business model elsewhere.
Myplas installed lines to recycle and pelletize both low and high density polyethylene in its 170,000-square-foot location.