France: Plastic Recycling Indorama Ventures Enters Contract to Acquire Sorepla
With this deal, Indorama aims to expand its PET Recycling business and become one of the leaders in the European region. The acquisition will also attract new opportunities to serve the increasing demand for food grade RPET.
Bangkok/Thailand – Indorama Ventures (IVL), a global chemical producer, has recently announced that it has entered into an agreement to acquire Sorepla Industrie, a plastics recycling facility in France. Founded in 1991, Sorepla Industrie is one of the largest recyclers in Europe. The facility consists of three production lines; Recycled Polyethylene Terephthalate (RPET), Recycled High Density Polyethylene (RHDPE) and food-grade Pellets, with a combined capacity of 52,000 tonnes/annum. Sorepla can offer consistently high quality recycled PET materials that meet the customers’ specific needs in packaging and fibers.
This acquisition is strategically in line with the company’s objectives of long-term sustainability. The addition of Sorepla will further solidify IVL’s position as one of the leaders in recycling in Europe and opens up new opportunities to serve increasing demand for food grade RPET.
While IVL has a significant recycling presence in France through its subsidiary, Wellman France Recyclage in Verdun, the acquisition of Sorepla gives the company additional capabilities to deliver food grade RPET to serve increasing demand among major brand owners for more sustainable packaging solutions.
RPET resin is widely used for food and beverage packaging as well as fiber applications in Europe, a sector in which IVL holds a leadership supplier position. The demand for food-grade RPET in Western Europe is expected to grow at a CAGR of 7 % from 2018-2021, and is currently outstripping supply.
A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth. Recycled PET is well-known to be hygienic and is approved for food-contact applications in most countries around the world.