LyondellBasell and Genox Recycling have jointly announced that they have entered a memorandum of understanding (MoU) to form a Joint Venture (JV) to construct a plastics recycling plant in Zhaoqing, Guangdong Province, with a 2023 launch date in mind. Post-consumer plastic waste will be recycled at the plastic recycling plant using mechanical recycling technology, and new polymers will be produced for the LyondellBasell CirculenRecover product line, which consists of products like High-Density Polyethylene (HDPE), Polypropylene compounds (PP), etc. This joint venture aims to support the growing demand for circular and sustainable solutions, promote high-quality development of local recycling, and reduce the amount of plastic waste sent to landfills, incinerators, or the environment.
According to Limin Fu, vice president of LyondellBasell China Polyolefins, "Advancing a circular economy that enables plastic waste to be transformed into more sustainable solutions for our customers is important to us, and we are pleased to collaborate with Genox Recycling to make this happen. "This new joint venture is an important step toward LyondellBasell's objective of producing and marketing two million metric tons of recycled and renewable-based polymers annually by 2030. It will aid in the development of China's local plastics recycling infrastructure.
According to Genox Recycling chairman Jingfa Jiang, "Genox Recycling believes that innovation and collaboration are necessary ways to achieve carbon neutrality. "We are delighted to collaborate with LyondellBasell to accelerate a circular and low-carbon future by leading the development of plastics recycling with a complementary mix of strengths from both parties."
One of the recent initiatives LyondellBasell has taken to increase its recycling capacity globally is this partnership. To improve its local capabilities to supply circular solutions in China and contribute to the growth of local circular economies, LyondellBasell will continue to collaborate with partners along the value chain.
So far, the recycled plastics market has been bearish in China, as both upstream and downstream companies have had to completely stop or lower their manufacturing activities because of severe power shortages. As on 7th October 2022, Recycled High-Density Polyethylene (blow molding grade) was being traded at USD 850 per MT on a (spot) ex–Tianjin basis, and Recycled Polypropylene (injection molding grade) stood at USD 880 per MT on (spot) ex–Shenzhen basis. However, this scenario might change as plastic companies are anticipated to ramp up their production activities in the upcoming months.
ChemAnalyst anticipates the price of Recycled Polypropylene to go up to 8.6% per MT this quarter (for injection molding grade) and Recycled High-Density Polyethylene to expand to 7.23% per MT (for blow molding grade) in the same time frame.