Indorama Ventures will use the ADB loan to boost capacity at its plastic recycling plants in India, Indonesia, the Philippines and Thailand

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IVL intends to reduce ocean plastic waste. (Credit: pasja1000 from Pixabay)

The Asian Development Bank (ADB) has approved a $100m financing package for Thailand-based chemicals firm Indorama Ventures Public Company (IVL) to help minimise the environmental impact of plastic and promote a circular economy.

The finance package includes $50m loan from ADB and $50m from the ADB-administered Asia’s Private Infrastructure Fund (LEAP).

Additionally, International Finance Corporation (IFC) will provide $150m loan and a further $50m will be provided by DEG – Deutsche Investitions- und Entwicklungsgesellschaft.

The funding will be used by IVL to boost capacity at its plastic recycling plants in India, Indonesia, the Philippines, and Thailand. The plants will be equipped to recycle polyethylene terephthalate (PET) plastics that are widely used in beverage bottles.

ADB private sector operations and public-private partnerships vice-president Ashok Lavasa said: “The recycling of plastics like PET is a must for healthier oceans, and this initiative will help to achieve that objective by partnering with IVL, which is the global leader of PET production and recycling. We are also excited to work closely with IFC and DEG in this important journey.”

The ADB financing is expected to help IVL in meeting the demand for recycled plastic packaging by collecting and treating plastic waste, which would otherwise enter the oceans.

Indorama Ventures chief sustainability officer Yashovardhan Lohia said: “IVL is building the recycling infrastructure needed to divert waste from the marine environment. By using post-consumer PET bottles as a feedstock for new bottles, we give value to waste.

“This drives improvements in waste collection systems, meaning less waste and cleaner oceans.”

The plants, which are planned to be built by IVL under the project, will be fully operational by 2022 and are capable of diverting nearly five billion additional bottles from waste annually.

In August this year, IVL agreed to acquire Industrie Maurizio Peruzzo Polowat spółka z ograniczoną odpowiedzialnością (IMP Polowat), which is a PET recycling facility in Poland.