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Mpact PET Recycling Plant in South Africa

A Mpact (polyethylene terephthalate) PET Recycling Plant was opened in South Africa to process about 29,000 tons of PET bottles a year. The plastic packaging manufacturer,  Mpact began construction on the facility in January 2015 and completed the project in July 2015. South Africa’s departments of Environmental Affairs, Trade and Industry, and Economic Development also supported the $23.2 million project.

The Mpact  PET Recycling Plant became fully operational in May 2016. It uses advanced technology to transform discarded PET bottles into a raw material known as rPET. The facility was designed to produce about 21,000 tons of bottle-grade recycled PET pellets per year. Its location is at  Wadeville, Germiston, in the Gauteng province. The developer expects the facility to help recover about 186,000m³ of landfill space and also reduce 53,000 tons of CO² emissions annually.

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Reported in 2014

Mpact to construct a US$33.2m Polyethylene Terephthalate (PET) recycling plant in South Africa

Plastic Packaging manufacturer and recycler Mpact has signed an agreement with Industrial Development Corporation (IDC) to construct a polyethylene terephthalate (PET) recycling plant worth US $33.06m in Gauteng, South Africa.

This announcement was made by the company recently when it was releasing its financial results for the past six months ended June 30.

Commissioning of the new recycling plant is expected to take place in the second half of 2015 and Mpact Polymers is expected to own 79 percent of the company while the remaining 21 percent will be owned by IDC.

The new plant is expected to process about 29 000 t/y plastic bottles, while at the same time generating 21 000 tons of raw material directly referred to as PET. This would add an important dimension to the business of the company.

The CEO of Mpact Bruce Strong noted that the production company will also enable Mpact to enhance its position as market leader in recyclables in South Africa. Development of the plant was done with the collaboration of major customers to ensure that the processed recyclables met international standards.

Some of the clients the company is working with to ensure the success of PET production include Amalgamated Beverage Industries (AIB), a bottling partner to Coca-Cola, SAB Miller, and PETCO. However, ABI will be the main customer.

US $19.83m has been provided by IDC in debt and an additional US 2.83m for its equity stake in the new recycling plant. The Department of Trade and Industry has approved section 121 in tax inducement.

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