Packaging maker Plastipak Holdings Inc. is expanding its recycling operations in Europe with a new food-grade PET recycling facility in Spain.
The Plymouth, Mich.-based firm said May 13 it's building a recycling plant with capacity for 20,000 metric tons (44.1 million pounds) of recycled PET pellets at its existing container and preform manufacturing site in Toledo, Spain.
The plant, which will create 14 jobs, will start production in summer 2022. It will be the company's fourth recycling facility in Europe and its fifth globally.
A company executive linked the investment to plans by the Spanish government to tax nonrecyclable plastic packaging and also to recycled content requirements in the European Union's plastics directive.
"The project comes in advance of minimum levels of recycled content mandated by the single-use plastics directive, and will support brand owners to reduce their financial obligations under the planned Spanish plastics tax," said Pedro Martins, the company's executive managing director for Europe.
Financial details were not disclosed.
The company said it is the largest maker of bottle grade recycled PET in Europe, with current production of over 130,000 metric tons (286.6 million pounds) at plants in France, Luxembourg and the United Kingdom. It has a PET and high density polyethylene recycling operation in Dundee, Mich.