The plant is intended to process rigid packaging post-consumer waste and produce 50,000 tonnes of recycled polyethylene (PE) and polypropylene (PP) annually
Shakti Plastics MD Rahul V Podaar and LyondellBasell EVP Yvonne van der Laan after signing the MoU. (Credit: LyondellBasell Industries Holdings B.V.)
Chemical company LyondellBasell and plastic scrap recycler Shakti Plastic Industries have inked a memorandum of understanding (MoU) to form a joint venture to build a mechanical recycling plant in India.
The fully-automated plant is intended to process rigid packaging post-consumer waste and produce 50,000 tonnes of recycled polyethylene (PE) and polypropylene (PP) annually. The amount is equivalent to the single-use plastic waste produced by 12.5 million citizens, LyondellBasell said.
Expected to be operational by the end of 2024, the new facility will become the largest mechanical recycling plant in India.
The chemical firm will market the recycled goods created by this joint venture, increasing its Circulen Recover portfolio of current PE and PP materials. It will help fulfil the demand for recovered polymer materials from converters and brand owners in India.
LyondellBasell Circular and Low Carbon Solutions executive vice president Yvonne van der Laan said: “The proposed joint venture will allow us to address the issue of plastic waste in the second most populated country in the world and expand our circular polymer product offering to India.
“Combining our respective expertise with Shakti Plastic Industries will create an innovative system that can be scaled as the circular economy grows.”
As per the MoU, the joint venture will use each partner’s strengths once it is created. Shakti Plastic would give structure and formality to the waste collection process to gather materials for the new venture.
LyondellBasell will put to use its extensive experience in product development, leadership in advanced plastic production technology, and a solid understanding of the polymer markets in India.
Shakti Plastic Industries managing director Rahul V. Podaar said: “The circular economy will increasingly develop into a critical part of the plastic value chain in India, requiring solutions across the value chain to develop a sustainable world of plastic recycling.
“As we move towards becoming a value player in the circular economy, we will continue to seek opportunities for future growth.”