Engee’s new PET plant is expected to double the country’s number of plastic bottles recycled annually
International Finance Corporation (IFC) has approved $39m financing package to help Nigerian PET resin manufacturer Engee Manufacturing build a continuous polymerisation polyethylene terephthalate (PET) resin plant in Ogun state.
The loan will be used to fund the construction of PET resin plant, which is expected to be fully operational within two years.
Through a process of collecting, cleaning, and processing up to 30,000 tons of used plastic bottles annually, Engee’s new PET plant is expected to double the country’s number of plastic bottles recycled.
New PET plant to source 20% of raw materials from local waste plastics
The facility will source more than 20% of its raw materials from local waste plastics, thus helping Nigeria in strengthening its recycling and manufacturing sectors.
Engee Manufacturing managing director Alexander Gendis said: “IFC’s financing for the first continuous polymerization plant in Nigeria will support our efforts to grow the country’s packaging for drinking water, beverages and pharmaceutical industries. This will be only the second such plant anywhere in sub-Saharan Africa.
“The plant and process are enough to fast-track the evolution of plastics recycling in the country and support jobs along the recycling value chain. This will be a big win for Nigeria’s economy and its environment.”
Additionally, IFC will provide advisory services support to Engee to implement a plastics waste recycling programme, specifically for bottle-grade resins.
The financing package includes IFC’s $24m senior ‘A’ loan and a $15m subordinated loan from the International Development Association’s Private Sector Window Blended Finance Facility.
IFC Nigeria country manager Eme Essien Lore said: “IFC’s partnership with Engee reflects our support for Nigeria’s private sector, especially at this difficult time when the global economy is facing the challenge of COVID-19.
“The new factory will make positive contributions to Nigeria’s manufacturing sector and job growth, while potentially revolutionizing the recycling industry in the country.”
Last year, Egypt-based Middle East Glass Manufacturing Company (MEG) has secured $100m funding from the IFC.