California-based PET resins manufacturer and recycler Verdeco Recycling (Verdeco) opened a new PET recycling facility in June 2016 in Terre Haute, Indiana, US.

The new facility is the second plant of Verdeco in the US. The first plant opened in 2012 in South Gate, California, near Los Angeles.

Verdeco aims to expand its footprint in the country with this new investment, as well as develop other plants and expansions.

The Terre Haute recycling plant allows the company to better serve existing clients, while also attracting new companies to its current recycling customer base.

The facility created 29 new jobs, which will increase further with future expansions.

Location of Verdeco’s new recycling plant

The new plant is located in the 1,500-acre Vigo County Industrial Park I (VCIP I) in Terre Haute. The VCIP has been selected due to its close proximity to the greater Indianapolis region, which is in-turn located close to the four US interstates, allowing convenient service to Midwestern markets.

Other reasons for selecting the site include availability of skilled local workforce, which will enable the company to further strengthen its reputation of providing high-quality products and services.

The company received significant support from the Indiana Economic Development Corporation in the site selection process. The Terre Haute/Vigo County and the Terre Haute Economic Development Corporation enabled seamless integration of the company into the Terre Haute area.

Details of the new recycling plant

Verdeco utilises state-of-the-art technology, advanced extrusion equipment and conveying systems at the new plant to ensure that it meets the highest reliability, quality and cleanliness standards.

The recycling system incorporates a twin-screw co-rotating extruder that mixes a silicone-based additive with the polymer melt to create poly-condensation reactions. The result is recycled PET that has higher physical and mechanical properties compared to conventional PET recycling systems.

“The Terre Haute recycling plant allows the company to better serve existing clients, while also attracting new companies to its current recycling customer base.”

The recycled PET is of food-grade plastic, as approved by the US Food and Drug Administration (FDA).

Production and distribution at the recycling plant

Production at the plant commenced in the second quarter of 2016. The plant has an annual initial capacity to produce 60 million pounds (Mlb) of FDA-approved, food-grade, recycled PET.

With the new plant, the company’s total annual capacity in the US reached 100Mlb of recycled PET. The company effectively increased its distribution in a cost-effective and eco-friendly manner by reducing shipping costs and increasing the company’s capacity reach across the country.

Contractors involved

The construction contract for the plant was awarded to Garmong Construction, a company based in Terre Haute, along with other local contractors for electrical and mechanical installation services.

PET-M recycling technology and rPET

The plant produces recycled PET using advanced PET-M recycling technology, which uses a silane-based modifying agent to restore physical and mechanical properties of post-consumer PET instead of using high pressure and vacuums for extended periods of time.

The technology utilises the most innovative solutions in the field of polymer processing, including the most advanced machinery, and enables lower energy consumption and waste reduction, which decreases its carbon footprint.

As a result, produced recycled PET (rPET) is used in most of the applications where virgin PET is used. The demand for rPETs bottles and containers has been increasing gradually with billions of plastic containers annually produced. The convenience in using the rPET containers in food packaging and other applications has made it a viable alternative to the expensive virgin PET.

Marketing commentary on Verdeco Recycling Midwest

Verdeco Recycling Midwest is the subsidiary of Verdeco Recycling in Terre Haute, Indiana. The company produces high-quality rPET material, which finds applications in food packaging and other high-value applications.