Plastics maker Indorama commits $1.5 billion to recycling

[snoop1130]

Plastics maker Indorama commits $1.5 billion to recycling

By Chayut Setboonsarng

 

FILE PHOTO: Aloke Lohia, CEO of Indorama Ventures, talks during a Reuters interview at a hotel at Bangkok, Thailand, February 27, 2019. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thai chemicals company Indorama Ventures (IVL.BK) has committed $1.5 billion (£1.24 billion) of investment in recycling as consumers become more aware of the environmental impact of single-use plastic and regulators push for more recycling, it said on Wednesday.

 

Indorama’s main business is the production of PET resin, a polymer used to make plastic bottles and fibres used in products such as seat belts and tyres.

 

In the 12 months to June 30 the company produced nearly 5,000 kilotons of PET.

 

“We are investing $1 billion in recycling over the next five years,” Chief Executive Aloke Lohia told Reuters on Wednesday, adding that investment would include greenfield and brownfield mergers and acquisitions focusing on bottle-to-bottle recycling.

 

Indorama has 11 recycling sites around the world, including plants in Thailand, Mexico and France, and aims to step up its green credentials in response to new regulation being rolled out by governments as well as changing expectations from customers.

 

In March the European Commission announced a target to incorporate 25% of recycled plastic in PET bottles by 2025, with a targeted 90% collection rate.

 

After 2023 Indorama plans to invest an additional $500 million by 2025 to help its customers to achieve the 25% target, Lohia added.

 

Indian-born Lohia started Indorama in Thailand in 1994 with about 200 employees. The company has since grown to employ 18,000 people across 31 countries.

 

“There is infrastructure in the world to recycle PET. The problem lies in the collection,” he said.

 

Consultancy Wood Mackenzie Chemicals estimates that the collection rate for PET beverage bottles in the European Union was about 58% in 2017.

 

About 40 percent of Indorama’s revenue is from North America and about 30 percent from Europe.

 

Indorama, which counts Coca-Cola (KO.N), PepsiCo (PEP.O) and Nestle (NESN.S) among its customers, said it is working with brand owners and governments to allow more bottle-to-bottle recycling.

 

The acquisitive company still has $2.5 billion of uncommitted capital for new projects in its other businesses, including olefin, fibres and feedstocks, Lohia said.

 

Indorama this month bought Huntsman Corp’s (HUN.N) chemical intermediates businesses in Australia, India and the U.S. state of Texas for about $2.1 billion, beefing up its midstream operations.

 

-- © Copyright Reuters 2019-08-21

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[hotchilli]

12 hours ago, snoop1130 said:

“There is infrastructure in the world to recycle PET. The problem lies in the collection,” he said.

Until waste management especially in Thailand is taken seriously no amount of "recycling infrastructure" is going to help anything.

[mike324]

1 hour ago, hotchilli said:

Until waste management especially in Thailand is taken seriously no amount of "recycling infrastructure" is going to help anything.

that will be up to the governments initiative, but recycling center is pretty big business in Thailand because there are not much competition.

[Purdey]

I do wish the BMA would separate waste and send to recyclers. Most of it gets thrown on a dump. I know plastic bottles are separated but they are pretty much the only thing that is separated.

[Grumpy John]

That is good news!  Now how about he send a 6 wheel truck around to my place and pick up all the recyclable stuff I don't want any more.  ????

[Fred white]

15 minutes ago, Purdey said:

I do wish the BMA would separate waste and send to recyclers. Most of it gets thrown on a dump. I know plastic bottles are separated but they are pretty much the only thing that is separated.

We separate our plastic bottles and metal cans give them to a neighbor when they get enough they take it to a recycling place. If we had trash pick up I wouldn't have to burn the rest of the trash

[Cadbury]

 

On 8/21/2019 at 8:38 PM, snoop1130 said:

Thai chemicals company Indorama Ventures (IVL.BK) has committed $1.5 billion (£1.24 billion) of investment in recycling

A chemical and plastic company dedicated to the environment. Pull the other one!