The factory, which is situated in Juiz de Fora, Minas Gerais, Brazil, is increasing its annual manufacturing capacity of PET made from PET-PCR from 9,000 tons to 25,000 tons
Thailand-based petrochemical company Indorama Ventures has completed the capacity expansion project at its polyethylene terephthalate (PET) recycling facility in Brazil.
The expansion project received support from the International Finance Corporation (IFC), a member of the World Bank, through a ‘Blue Loan’.
The recycling factory, which is situated in Juiz de Fora, Minas Gerais, Brazil, is increasing its annual manufacturing capacity of PET manufactured from post-consumer recycled (PET-PCR) material from 9,000 tons to 25,000 tons.
According to Indorama Ventures, the initiative is part of its Vision 2030 goal to develop a sustainable international business, which includes spending $1.5bn to boost its ability to recycle 50 billion PET bottles annually by 2025.
The petrochemical company, a provider of recycled PET resin for beverage bottles, has put $20m to improve its Brazil facility’s processes. The funds will also be used to buy new equipment like washing machines to grind bottles in water, remove labels and lower water consumption by 70%.
Indorama Ventures Deputy Group CEO DK Agarwal said: “It is extremely gratifying to leverage the IFC’s generous funding to invest in important projects that build on Indorama Ventures’ industry leadership in sustainability.
“We are grateful to IFC for this blue loan reinforcing Brazil’s importance as a leader in sustainability, and which also recognises the excellence and potential of our recycling operations.”
The IFC gave $300m in Blue Loan funding to Indorama Ventures in November 2020 to increase recycling capacity and divert plastic waste from landfills and oceans in Thailand, Indonesia, the Philippines, India, and Brazil.
In order to fund sustainability initiatives, the petrochemical company has received $2.4bn in long-term sustainable financing from different financial institutions between 2018 and 2022.
IFC Brazil country manager Carlos Leiria Pinto said: “This is IFC’s first blue loan focused exclusively on combating marine plastic pollution. Working together with a global leader in this industry demonstrates the mutual commitment towards sustainability.”