PET bottle flakes and rPET pellets

BIPJ’s PET bottle flakes and rPET pallets production facility in Jombang, East Java, Indonesia, has been operating smoothly since late 2022. The facility produces 24,000 t of flakes and 16,000 t of rPET pellets annually. Starting with locally sourced post-consumer PET bottle bales, BIPJ produces FDA-approved clear flakes using equipment from reputable Asian and European manufacturers.

The flakes are processed into rPET pellets, known as Vega rPET, using Erema’s Vacunite extrusion line and Polymetrix SSP. Vega rPET pellets are being tested in-house and by TÜV Rheinland for benzene and limonene content, and found to be well within permissible limits. TÜV confirmed that BIPJ’s flakes and pellets do not contain any Substances of Very High Concern (SVHCs) over 0.1% by weight, per EU Reach regulations. Additionally, the products comply with EU Regulation 10/2011 for food contact materials. Also, BIPJ is in the process of obtaining Recyclass and APR certifications, expected by Q3 2024, and has completed the documentation for Efsa certification. The company is currently awaiting an audit. On delays in Efsa certification, Managing Director Gautam Rathore stated: “We obviously are facing delays in the Efsa certification, which is the case with most of the foreign PET recyclers, since the change in the regulations in October 2023. While the local recyclers in the EU seem to be well covered, it seems that the foreign recyclers find themselves in a situation where in several countries Competent Authority (CA) has still not been defined/identified and as a result there is ambiguity relating the new procedures and requirements for audits.”

Looking ahead, BIPJ sees a promising future for the PET recycling industry, driven by increasing rPET demand and the emphasis on sustainability. Rathore says: “Currently the demand for rPET is primarily coming from developed markets like Europe and US where regulations are mainly driving the demand. Several multi-national brand owners have made their sustainability commitments public and are implementing them on a global level. Regional brand owners are yet to start using rPET in a meaningful way, since they are not motivated enough due to the higher price of rPET compared to vPET. Supply is still trying to catch up with the global demand and we believe this will continue to be the case for a while, while regional imbalances exist. Asian suppliers of rPET are currently focusing on selling product into developed markets until the regional markets catch up on the trend. This high demand for rPET should help improve the bottle collection rates in most Asian countries which is an important step towards a more sustainable future, not just in developed countries but across the globe.”

Caption: Gautam Rathore, Managing Director BIPJ (right) and Naman Mehta, Director BIPJ

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