MOSCOW (MRC) -- Indorama Ventures, which recently launched its first recycled polyethylene terephthalate (R-PET) plant in the Philippines in a joint venture (JV) with Coca-Cola Beverages Philippines (CCBPI), expects persistent challenges in availing themselves of sufficient feedstock, said the company.
Indorama commenced plant operations at the end of 2022 after encountering a number of delays in completing construction, due to the surge of COVID-19 cases in the country over the past few years.
The pandemic not only made it difficult to carry out construction at the site but also further constrained the availability of post-consumer bales (PCB), as material pickers were restricted from collection activities.
Towards the end of 2022, when COVID-19 cases were generally under control across the region, Indorama and CCBPI sought the assistance of the local authorities to connect with bale feedstock suppliers across the Philippine archipelago.
Bales were agreed to be shipped from all parts of Luzon, Visayas and Mindanao – the country’s three major island groups – to Indorama’s plant in Cavite, which is a few hours south of Manila.
Extremely low levels of recycling in the country and inefficient waste collection activities have capped the supply of bales across the country, especially for premium quality materials which are required to produce bottle-grade R-PET pellets.
In light of this situation, Indorama combined purchases of bales and R-PET flakes to be able to maintain operations at the new plant, which has a nameplate capacity of 30,000 tonnes/year.
R-PET flakes suppliers to Indorama have had to import bales into the country, highlighting the huge gap between supply and demand for bales.
We remind, in mid-October this year, Indorama opened its R-PET facility in Cavite, Philippines which is a joint venture with Coca-Cola Beverages Philippines (CCBPI). Construction at its Indonesian R-PET plant is also ongoing, with commencement date expected towards the close of 2023.
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific. The company’s portfolio comprises Combined PET, Integrated Oxides and Derivatives, and Fibers. Indorama Ventures products serve major FMCG and automotive sectors, i.e., beverages, hygiene, personal care, tire, and safety segments.