The supply deal will allow Amcor to obtain SYNDIGO rPE resin, which is produced at NOVA Chemicals' first mechanical recycling plant that is expected to open in Connersville, Indiana, in 2025


Amcor and NOVA Chemicals partner for polyethylene resin. (Credit: Amcor plc)

Packaging solutions provider Amcor has signed a Memorandum of Understanding (MoU) with sustainable polyethylene producer NOVA Chemicals for the purchase of mechanically recycled polyethylene (rPE) resin.

Under the multiyear partnership, Amcor will buy the rPE resin for use in its flexible packaging films.

The packaging solutions provider plans to enhance the use of rPE in flexible packaging applications in order to support its packaging circularity.

The supply deal will allow Amcor to obtain SYNDIGO rPE resin.

This resin is produced at NOVA Chemicals’ first mechanical recycling plant, which is expected to open in Connersville, Indiana, in 2025.

The recycling facility is a major extension of NOVA’s Circular Solutions business, which was unveiled in July, the packaging company said.

Amcor Flexibles North America president Fred Stephan said: “This is an exciting opportunity for us to supplement our rPE supply in support of our target to achieve 30% recycled material usage across our global portfolio by 2030.

“Incorporating rPE into flexible packaging films helps brand owners meet voluntary commitments on recycled content targets, reduce greenhouse gas emissions, and keep plastic waste in the economy and out of the environment.”

NOVA Chemicals, headquartered in Alberta, Canada, intends to increase its recycling footprint across North America over the coming years.

This will help achieve the company’s goal of having 30% of all PE sales come from products that contain recycled content.

NOVA Circular Solutions vice president Greg DeKunder said: “We are pleased to work with Amcor to bring more film-grade rPE to market and further drive the circular economy.

“Reshaping plastics for a better future will take collaboration within our industry, and we share Amcor’s commitment to further global packaging circularity.”

Amcor is engaged in the development and production of responsible packaging solutions for a range of materials for food, beverage, pharmaceutical, medical, home and personal care, and other products.

Last month, Amcor inked an MoU with South Korean petrochemical company SK Geo Centric for recycled content supply.