Thailand-based Indorama Ventures has agreed to acquire French plastics recycling firm Sorepla Industrie for an undisclosed sum.
Image: Indorama Ventures to acquire plastics recycling firm Sorepla. Photo: courtesy of byron mctaggart / FreeImages.
Established in 1991, Sorepla is a major European recycling firm that works with fiber and packaging industries.
The firm’s plastics recycling facility is composed of three production lines for recycled polyethylene terephthalate (rPET), recycled high density polyethylene (rHDPE) and food-grade pellets.
The facility holds capacity to produce 52,000 tons of recycled plastics per annum. Sorepla employs a total of 58 people.
Indorama has acquired the facility as part of its long-term sustainability objectives, and will help the company to expand its recycling activities in Europe and meet increasing demand for food grade rPET.
In France, Indorama already carries out recycling operations through its subsidiary Wellman France Recyclage, which is based in Verdun. The acquired business is near to the existing recycling business, enabling to coordinate the businesses to expand operations.
The rPET resin is mostly used in food and beverage packaging, as well as fiber applications in Europe.
According to Indorama, the demand for food-grade rPET in Western Europe is expected to grow at a CAGR of 7% from 2018 to 2021.
The recycled PET is approved for food-contact applications in most countries across the globe, said Indorama
Indorama Ventures Group CEO Aloke Lohia said: “We believe that the recycling of PET packaging is one of the most responsible solutions for the preservation of resources and the reduction of PET containers in landfills. Indorama Ventures is playing its part and investing in recycling solutions globally
“With a comprehensive European network for bottle sourcing and good supply chain efficiencies, we feel that this acquisition will contribute as an attractive platform for strong future growth in the sustainable recycling business with the potential to expand globally.”
Based in Bangkok, Indorama Ventures produces petrochemical products and reported consolidated revenue of $8.4bn in the last year. The company employs about 15,000 people.
Indorama’s products are used in various sectors, including beverages, hygiene, personal care, tire and safety segments.