Indorama Ventures’ PET Recycling Project
Minimizing PET waste sent to landfill and promote the efficient use of natural resources through recycling and waste processing initiatives

Project Background



Our commitment to corporate citizenship reflects our focus on material aspects of the Company’s operations and address social issues. Since IVL’s main business is manufacturing of PET which contribute about 42% of our EBITDA in 2015, we aim to minimize PET waste to landfill and promote the efficient use of natural resources through recycling and waste processing initiatives, which reflect the UN Sustainable Development Goals (SDGs) to promote sustainable consumption and production (SDG 12).


PET is one of the most familiar types of plastic packaging and now used for whole range of consumer products in addition to carbonate beverages. The increase in consumption causes an increase in generated PET waste. Our customers, mainly major food and beverage companies, are also facing challenges enforcing by laws to make their packaging more sustainable by reducing materials use and boost recycled content.

In responding to the need for customers and tackle global challenges on resource scarcity and waste, we start to explore new project as part of corporate sustainability programs. The Company has conducted extensive research on the life cycle impact, the regulatory environment and possibility of recycling PET waste including access to technologies, securing waste materials for recycling and markets for recycled products. We decided to start up a project to produce PET flake from waste PET bottles in 2011. IVL’s decision to execute the recycling project is based on the growth PET use in a number of industries, opportunity of PET recycling and increased attention of development of a circular materials economy.

To gain quick access to recycling know-how and proven technologies, our PET recycling project is being developed through a newly acquired operating entity. We have invested in two flake processing facilities, one in Spijk, the Netherlands and the second in Verdun, France and one fiber production facility in Ireland. Discarded PET bottles were sourced and collected through bottle sourcing network throughout Europe to facilitate maximum supply chain efficiencies.

These two bottle recovery plants process discarded PET bottles to produce 70,000 tonnes of recycled PET flakes to serve the facility in Ireland. Recycled PET flakes are then converted into both food-grade and fiber-grade materials.

With this project, IVL is not only able to pursue customers’ sustainability needs but also meet the demand of consumers for more recycling of post-consumer products and contribute to make Indorama Ventures a ‘zero waste’ company with a low carbon footprint

This PET recycling project complements IVL’s existing capability and serves as a way to gain access to new markets and product lines. Besides opportunities for business growth, this project also provides access to proven recycling technology allowing IVL to quickly transfer technology to the Company’s other assets with a reduced learning curve. As this is the largest recycling capacity in the whole of Europe, the project supports economic growth while reducing production costs and providing a foundation for future growth in the sustainable recycling business.

Objective



To reduce the amount of waste that is sent to landfills and incinerators; reduce natural resources consumption; and increase efficient use of natural resources. Therefore, save energy and water and reduce emissions that contribute to global climate change. The project also aims to increase customer service and satisfaction and provide an opportunity to promote sustainable economic growth.




Indorama Ventures Recycling Plant
in Nakhon Pathom
Over the past few years, we continue to expand PET recycling project through the establishment of new recycling plants in Thailand, USA and Mexico. These expansions are a further milestone in strengthening our business and reflect our desire to continue to build a more sustainable business.


Since the PET recycling project has been operating, IVL is able to simultaneously deliver social and environmental benefits to community.

Business and Environmental/ Social Benefits



Business Benefit KPIs:

The PET recycling project becomes a value-creating strategy for IVL.

Business Benefit KPIs
Measured via
Increased revenue from higher sales and market share – gain access to new markets and product lines
Revenue growth from recycling business
Cost savings due to efficiency improvements
Reduction of energy consumption; reduction of landfill disposal cost; reduction of raw material costs
Operational saving by maximizing existing assets and able to transfer technology to other assets
Asset productivity
Economic incentives from supporting recovery and recycling schemes
Reduction of taxes and duties
Enhance company image and reputation
Positive media coverage; customer satisfaction survey; employee engagement survey
Increase competitive position through recycling capacity; enable IVL to serve customer demand for sustainable products and offers better levels customer services
Market share; customer attraction and retention
Positive acknowledge by public media and community acceptance
Press coverage, community satisfaction score
Improved raw materials security by reducing dependent on petroleum-based feedstocks
Availability of raw materials


Social / Environmental Benefit KPIs:

Social/ Environmental Benefit KPIs
Measured via
Community vitality by creating employment in local community
Number of direct jobs created
Grow economic activities at each point of a product’s life includes materials collection, processing and transportation, etc.
job creation, number of local hire
Enhance local capacity and skills by training local people and provide the skills needed as well as contribute to public consultation and direct engagement with local institutions, NGOs and other non-profit organizations
Number of training hours per employees; participation and engagement with local institutions, NGOs and other non-profit organizations
Reduction of plastic waste
Amount of PET waste materials sent to landfills
Efficient manage natural resources to address key challenges of resource scarcity
Reduce water and energy use
Reduce emissions that contribute to global climate changes
Reduction in greenhouse gas emissions, number of successful implemented technologies that reduce GHG