South African flexible packaging recycler Myplas expands into US

An initiative to stimulate a circular economy for flexible packaging in the U.
S.
Upper Midwest has received funding from two funds run by Closed Loop Partners
.
Its Closed-Loop Infrastructure Fund and Closed-Loop Circular Plastics Fund have committed $5 million to build a flexible film recycling plant in Minnesota
.

A joint initiative of companies, institutions and non-profit organizations (MBOLD) in the region, the project is dedicated to addressing challenges related to food and agricultural research and fostering innovation
.
The project aims to develop recycling infrastructure to reduce the use of virgin plastic, reduce waste and increase the supply of recyclable materials
.
Members of MBOLD, including General Mills, Schwan's Company, Target, Ecolab, Cargill, Land O'Lakes Corporation and the University of Minnesota, work with film recycling company Myplas USA and film manufacturer Charter Next Generation across the value chain
.

The project will allow Charter Next Generation to purchase recycled resin from Myplas, allowing the company to expand its portfolio of sustainable film products
.
MBOLD members Cargill, General Mills, Schwan's Company, Land O'Lakes and the University of Minnesota will work with Charter Next Generation to evaluate potential product applications using recycled resin
.
Land O'Lakes, Cargill, Schwan Corporation and the University of Minnesota will explore opportunities to send film waste directly to Myplas USA for recycling after the plant begins operations
.

This will be the first US facility for South African recycler Myplas
.
A new 170,000-square-foot mechanical recycling plant is scheduled to begin operations in the spring of 2023 and, at full capacity, will be able to process nearly 41,000 tons of PE flexible packaging waste a year, converting it into LDPE and HDPE recyclables
.

Ron Gonen, founder and CEO of Closed Loop Partners, said: “There is growing demand for recycled polyethylene across the value chain, yet only 11% of polyethylene film in North America is currently recycled
.
This new facility is an important piece of circular economy infrastructure.
In part, local market capacity needs to be developed to manage hard-to-recycle plastics
.
”

The United States uses 5.
5 to 7 million tons of flexible packaging and films annually
.
It is estimated that 5% of the soft film used each year is recycled, and the rest is landfilled, incinerated, or even discharged into the environment
.

JoAnne Berkenkamp, ​​managing director of MBOLD, said: "We are building a regional ecosystem to support recycling initiatives for soft films
.
"

Research has shown that the use of recycled polyethylene resin has significant life cycle benefits compared to virgin plastic, including a 65% reduction in total energy consumption, a 59% reduction in water consumption and a 71% reduction in global warming potential
.

In addition to $5 million from the Closed Loop Partners fund, the program is backed by lead investors General Mills, Schwan's Company and Wisconsin-based film maker Charter Next Generation, as well as backing investors Target and Ecolab with a total of $9.
2 million in equity investments
.
The Alliance to End Plastic Waste has also provided millions of dollars in debt financing to support the development of new recycling facilities
.

"Myplas has a deep passion for plastic recycling, and we are proud to have our first U.
S.
facility and U.
S.
headquarters in Minnesota," said Andrew Pieterse, CEO of Myplas USA.
"Trusting in
our partners' commitment, investment and innovative thinking, And with its own technical expertise, it will transform the entire region
.
We are very much looking forward to
that.
”