Indorama Ventures expands PET recycling with acquisition of Sorepla
Indorama Ventures Public Company Limited (IVL) announced that it has entered into an agreement to acquire Sorepla Industrie S.A., a plastics recycling facility in France. Founded in 1991, Sorepla Industrie is one of the largest recyclers in Europe. The facility consists of three production lines; recycled PET (rPET), recycled high density polyethylene (rHDPE) and food-grade pellets, with a combined capacity of 52,000 tonnes per annum.
Regardless of the fluctuations in the quality of post-consumer feedstock, Sorepla can offer consistently recycled PET material for packaging and fibers. The company employs a total of 58 employees.
This acquisition is strategically in line with the company’s objectives of long-term sustainability. The addition of Sorepla will further solidify IVL’s position as one of the leaders in recycling in Europe and opens up new opportunities to serve increasing demand for food grade rPET. While IVL has a significant recycling presence in France through its subsidiary, Wellman France Recyclage in Verdun, the acquisition of Sorepla gives the Company additional capabilities to deliver food grade rPET to serve increasing demand among major brand owners for more sustainable packaging solutions. Due to Sorepla’s proximity to the existing recycling business, synergies of management and supply chain are expected to benefit IVL businesses.
The demand for food-grade rPET in Western Europe is expected to grow at a CAGR of 7% from 2018-2021, and is currently outstripping supply. A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth.
