US-based holding company HPC Industries has formed a joint venture (JV) with Macquarie Group’s Commodities and Global Markets group to build recycled polyethylene terephthalate (rPET) plants in the US.
The Circularix JV will develop and operate five recycling facilities, which will be capable of producing more than 275 million pounds of rPET resin a year in total.
The first facility will be located in Hatfield, Pennsylvania, and is scheduled to be operational by December this year.
Verdeco Recycling’s former CEO and founder Alex Delnik has been appointed as Circularix’s president and chief operating officer.
Circularix chairman and CEO Leon Farahnik said: “Consumer brands are struggling to meet their sustainability goals as current rPET supply is unable to scale as needed.
“Our move into rPET production is the beginning of a major and much-needed capacity expansion in the United States, and we are excited to continue playing an important role in the plastics recycling industry by uniting our experience with Macquarie’s.”
In addition to investing in the JV, Macquarie aims to support Circularix’s future growth by providing project debt, equipment finance, foreign exchange (FX) hedging and other risk management solutions.
The company offers risk management, market access and capital and financing solutions to the petrochemicals industry.
Macquarie Specialised and Asset Finance division executive director Ben Glover said: “We are delighted to support our clients in delivering the practical infrastructure needed to expand production capacity for post-consumer recycled materials.
“Ventures such as Circularix are a key part of the supply chain that will drive more post-consumer material back into higher value recycled packaging markets.”
Based in Los Angeles, California, HPC Industries is a management corporation that focuses on sustainability and the circular economy.
The company has established and operated several pioneering operations and facilities, including CarbonLITE Recycling, which is claimed to be the world’s largest recycler of plastic beverage bottles.