The Thai company Indorama Ventures Public Co. Ltd. (IVL), a major producer of recycled polyethylene terephthalate (PET) for beverage bottles, has announced plans to build a factory in Karawang, Indonesia, to recycle nearly 2 billion plastic bottles per year in support of the Indonesian government’s plan to reduce ocean debris.
The facility, scheduled to open in 2023, will recycle 1.92 billion PET bottles per year. The facility will employ 217 people. The plant will supply the washed and shredded post-consumer bottles as a raw material for PET flakes to produce a recycled resin suitable for use in contact with food.
According to a press release from IVL, the new facility supports the company’s global commitment to divert post-consumer PET bottles from landfills and towards the circular economy, which supports the government National action plan on marine plastic debris. The country aims to reduce its 2017 plastic waste by 70% by the end of 2025.
“I appreciate the initiative of Indorama Ventures to help the government end and alleviate the plastic waste crisis through its investment in this new recycling facility,” said Bahlil Lahadalia, Minister of Investment of the Republic of Indonesia. âIt is time for the government, and for all of us, to take action and tackle the waste problem. We invite more investors who are committed to having social impacts for the community and the environment. Together, we must safeguard the richness of our marine biodiversity for our children and grandchildren.
âThe unique PET plastic used in soft drinks and water bottles is 100% recyclable and must never end up in our oceans. Today we are announcing a new PET recycling facility in Karawang, âsaid Yashovardhan Lohia, sustainability manager at Indorama Ventures. âWe are delighted to contribute to the Indonesian economy by adding 217 ‘green jobs’ as well as indirect jobs to the region. Today’s announcement is made possible by Indonesia’s ambitious national plan to reduce marine plastic debris by 70%, reduce solid waste by 30% and treat 70% of solid waste by 2025 .
âThe Indonesian government’s leadership in waste allows us to invest in the necessary infrastructure,â adds DK Agarwal, CEO of the combined PET, IOD and fiber business at Indorama Ventures. âGiving waste an economic value, as a raw material for new bottles, also helps improve waste collection systems. By building the infrastructure to recycle post-consumer PET bottles into new bottles, we are reducing waste and preserving our oceans. This new recycling facility will support our shared goal of closed loop solutions and clean oceans. “
Indorama Ventures has six Indonesian sites in Purwakarta, Cilegon, Tangerang and Karawang. The company reports that the new recycling facility brings a circular business model to its Indonesian operations. In 2019, Indorama Ventures announced its intention to recycle a minimum of 750,000 metric tonnes of PET globally by 2025, investing up to $ 1.5 billion to achieve this goal. IVL’s new plant in Karawang, along with its other recycling facilities in Southeast Asia, will work with existing PET flake production facilities in Indonesia.