Circularix's First R-PET Facility Gets Into Operation
- 15-Feb-2023 3:43 PM
- Journalist: Shiba Teramoto
Recycled Polyethylene Terephthalate (R-PET) production and recycling facility openings and expansions in the United States are being prompted by increased demand for recycled materials. Recently, Phoenix Technologies and the German company Revalyu Resources made such announcements.
Likewise, at its plant in Hatfield, Pennsylvania, Circularix, a food-grade post-consumer Polyethylene Terephthalate (PET) manufacturer, has begun production. From recycled PET (R-PET) flakes, the facility will produce approximately 55 million pounds of food-grade R-PET pellets.
The Hatfield plant is the first of five planned recycling facilities in the United States, according to Circularix. The company says it intends to use all five facilities to produce 275 million pounds of R-PET pellets annually.
The equipment for four additional 55-million-pound capacity plants for R-PET production that Circularix plans to open in Arizona, Florida, Texas and the Pacific Northwest by the first quarter of 2025 has been ordered.
Leon Farahnik, chairman and CEO of Circularix, stated, "We are operational at our Hatfield facility and on schedule to complete our U.S. expansion." Our first and foremost commitment is to assist businesses in achieving their sustainability objectives as we collectively contribute in a concrete and responsible manner to a sustainable future."
Circularix is a collaboration between Macquarie Group and HPC Industries. Circularix announced a joint venture with Macquarie Group, a leading provider of risk management, market access, and capital solutions to the petrochemicals industry, in June 2022. In 2020, Macquarie established its Sustainable Waste Solutions team to provide finance and growth capital solutions to waste sector clients, focusing on facilitating the transition to a circular economy.
According to ChemAnalyst's market intelligence team, several U.S. downstream businesses are switching from virgin Polyethylene Terephthalate (PET) to recycled PET (R-PET). The R-PET market, which is currently stable, is anticipated to experience a spectacular rise in the coming months as an immediate consequence of these.
R-PET food-grade pellets were being traded at USD 1,780 per M.T. on a FOB-to-Los Angeles basis in the second week of February 2023. The company anticipates that the price of R-PET will rise by approximately 4% per M.T. this month and by an additional 4% in March.
