Calgary-based Nova Chemicals announced plans today to develop its first mechanical recycling facility in Connersville, Indiana. This first investment in mechanical recycling made by the company represents an important next step for the company in the direction of meeting its 2030 recycled content ambition of 30 percent and "a significant expansion" of its Circular Solutions business.
According to a news release, Nova has partnered with packaging giant Novolex Holdings Inc. on the venture. Novolex will operate the facility, which will employ about 125 and produce more than 100 million pounds of Nova's Syndigo-brand recycled polyethylene resin per year. Production should be at commercial scale by 2025, with material available to customers in 2026.
Nova recently announced its 2030 Roadmap to Sustainability Leadership targets, including its anticipated investment of between $2 billion and $4 billion by 2030 to expand its sustainable product offerings.
The firm also plans to decarbonise assets and explore new chemical recycling technologies, officials added.
Nova "continues to show clear leadership in reshaping plastics for a better, more sustainable world," President and CEO Roger Kearns said in the release. "We are committed to helping our customers achieve their recycled content goals through a variety of business models."
The new plant will be one of Connersville's largest private employers. Officials said the site was selected for its access to abundant feedstock supply of post-consumer films from nearby metropolitan areas and easy-to-access rail service. Novolex is a leading developer of packaging products for food service and industrial markets and has operated recycling plants for more than 15 years.
"Novolex is proud to collaborate with Nova Chemicals' Circular Solutions and is excited by the opportunity to operate this state-of-the art recycling facility in the Hoosier state," said Novolex Chairman and CEO Stanley Bikulege. "Indiana has long been a hub for sustainability, innovation, and business.
Bikulege added the new plant "will build on our experience of operating both our North Vernon plastics recycling facility in Indiana and our recycling plant in Wisconsin, as well as accelerate our commitment to support recycling and the circular economy."
Novolex, based in Hartsville, S.C., ranked as North America's sixth-largest film and sheet producer in the most recent Plastics News ranking, with annual sales estimated at $1.725 billion.
Nova is one of North America's largest PE resin makers. The firm employs almost 3,000 worldwide and has annual sales of $3.6 billion. Earlier this month, Nova and packaging firm Pregis Corp. said they have co-developed a sustainable packaging solution for food-safe applications in stand-up pouches and lay-flat bags. The package uses a Pregis film structure made with Nova's Syndigo-brand recycled PE.