Recycling: Röchling invests EUR10 mn euros in recycling in Germany; Indorama, Dhunseri and Varun Beverages in jv for PET recycling facilities in India

Plastics processor Röchling Industrial says it is investing almost EUR10 million in expanding its plant in Geeste-Dalum, Emsland. The Röchling Sustainability Centre will be expanded extensively by 2027.

Once completed, the centre will cover an area of more than 7,000 sq m on more than 30,000 sq m of company premises, with an aim to process more than 10,000 tonnes/year of plastic waste. In addition to the modern sorting plant, several new shredders as well as grinding and production plants will be purchased. In total, the expansion and the associated increase in capacity will create around 20 new jobs.

:Since 2021, offcuts from our own production and from customers have been returned to our facility in Geeste-Dalum and processed into new, valuable raw materials. They are cleaned, sorted and ground on site. The resulting recycled materials are reprocessed into high-quality semi-finished technical plastic products in our facility in Haren," explained Wilhelm Korte-Dirxen, COO of Röchling Industrial. 

"Our customers can then reduce their own amount of waste, return unused offcuts from production and purchase new semi-finished products made therefrom. Our extensive range of services and the high quality of our sustainable products strengthens the close relationship with our customers in the long term," he continued. The semi-finished products are sold in the Röchling-ReLoop product family for sustainable plastics, which the plastics processor launched in 2022.

The company is breaking new ground not only in terms of cooperation with customers. "Separating the waste pieces by type of plastic is a prerequisite for successful reprocessing. We utilise the latest technologies and facilities to provide a reliable and efficient sorting of plastics," the company says. PE and PP are primarily reprocessed in Geeste-Dalum. Other thermoplastics that were processed in one of Röchling Industrial’s 40 subsidiaries worldwide can also be reprocessed there.

Röchling Industrial has already invested EUR5 million in Geeste-Dalum.

In other news, Thailand-based chemical producer Indorama Ventures Public Company Limited, through its direct subsidiary – IVL Dhunseri Petrochem Industries Limited - and Dhunseri Ventures Limited have formed a joint venture with Varun Beverages Limited, PepsiCo's second-largest bottling company globally outside the US, to establish several greenfield PET recycling facilities in India.

The joint venture has already begun the construction of two PET recycling facilities, planned for completion within 2025, with potential for more.  One facility is in Kathua within the Jammu Division of the Indian Union territory of Jammu and Kashmir, situated in Northern India, while the other is in Khurdha within the State of Odisha, located in Eastern India. The aim is to reach 100 kilotonnes/year capacity of recycled PET (rPET) across all the facilities when combined.

This initiative aligns with the escalating demand for rPET content in India, driven by both regulatory mandates and a collective effort towards a circular economy for PET. The surge in demand reflects a significant shift, with projected volumes increasing from approximately 400 kilotonnes in 2025-2026 to over 1 million tonnes by 2031.

Mandates such as the Indian government’s compulsory requirement of 30% recycled plastic content in plastic packaging by 2025-2026, escalating to 60% by 2028-2029, underscores the urgency and importance of this transformation. Moreover, this move aims to effectively cater to the needs of India’s beverage brand owners, many of whom have established ambitious sustainability goals in line with regulatory directions.

Yash Lohia, representative of IVL Dhunseri, and Executive President Petchem Special Projects, and Chairman of the ESG Council of Indorama Ventures, stated, "We at IVL Dhunseri are delighted to collaborate with Varun Beverages, in the establishment of these mechanical recycling facilities in India. As the world’s largest recycler of PET, this partnership underscores our steadfast commitment to sustainability and our support for the region's escalating demand for rPET content. Anticipated to substantially diminish plastic waste, these new PET recycling facilities will convert post-consumer PET bottles into valuable resources. This initiative exemplifies the shared dedication of Indorama Ventures' and Varun Beverages to creating a circular economy, promoting environmental sustainability, and meeting the rising consumer demand for eco-friendly products."

The amalgamation of the three industry leaders bodes well for bolstering the region's recycling infrastructure. As regulatory frameworks increasingly advocate for heightened usage of recycled content, the joint venture is positioned to play a pivotal role in meeting these evolving requirements.

Indorama Ventures is the world's largest producer of recycled PET resins widely used in food and beverage packaging. Since 2011, the company has operated PET recycling facilities, gradually expanding its global footprint. In 2023, Indorama Ventures achieved a significant milestone, recycling over 100 billion PET bottles. Progressing towards its target of recycling 750,000 tonnes or 50 billion bottles annually by 2025, the company remains dedicated to advancing circular economy practices.

Varun Jaipuria, Executive Vice-Chairman of Varun Beverages, added, " As part of our long-term vision and in line with PepsiCo’s global PEP+ objectives, we remain committed to sustainability and environmental stewardship. We are making investments that emphasise using green energy as well as reuse of PET which will be instrumental in mitigating environmental impact. These endeavours are aligned with our pledge to the environment and reflect our ambition to nurture a greener future. Our collaboration with Indorama Ventures represents a strategic foray for Varun Beverages into the recycling market. As India's recycling landscape undergoes a paradigm shift, we take pride in spearheading this transformation alongside Indorama Ventures."

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