Thailand-based chemical producer Indorama Ventures (IVL) has signed an agreement to buy French recycler Sorepla Industrie.
The acquisition includes a facility that comprises three production lines for recycled polyethylene terephthalate (rPET), recycled high-density polyethylene (rHDPE) and food-grade pellets, with a combined capacity of 52,000t per year.
Sorepla offers recycled PET material for customers in the packaging and fibre industries.
Established in 1991, the business employs a total of 58 employees.
The transaction will allow IVL to bolster its position in recycling in Europe and offers new opportunities to meet the growing demand for food-grade rPET.
The company intends to capitalise on demand from brand owners for more sustainable packaging solutions, with demand for food-grade rPET in Western Europe projected to grow at a CAGR of 7% between 2018 and 2021.
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.”
IVL expects the transaction to offer enhanced supply chain synergies for its recycled fibre business due to the proximity of Sorepla.
With a portfolio comprising necessities and high value-added (HVA) categories of polymers, fibres, and packaging, the company operates through manufacturing plants across Africa, Asia, Europe and North America.