ROTTERDAM, Netherlands, Oct. 20, 2022 /PRNewswire/ — LyondellBasell and Shakti Plastic Industries, India’s largest plastic scrap recycler and waste collection company, have signed a Memorandum of Understanding (MoU) to form a joint venture to build and operate a fully-automated, mechanical recycling plant in India. The plant is intended to process rigid packaging post-consumer waste and produce 50.000 tonnes of recycled polyethylene (PE) and polypropylene (PP) per year, equivalent to the single-use plastic waste produced by 12.5 million citizens. It is envisaged that the new facility will become the largest mechanical recycling plant in India and is estimated to start at the end of 2024. LyondellBasell will market the recycled products produced by this joint venture adding volume to its Circulen Recover range of existing PE and PP materials to help meet increasing demand by converters and brand owners in India for recycled polymer materials.
“The proposed joint venture will allow us to address the issue of plastic waste in the second most populated country in the world and expand our circular polymer product offering to India,” says Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low Carbon Solutions. “Combining our respective expertise with Shakti Plastic Industries will create an innovative system that can be scaled as the circular economy grows.”
Once established, the joint venture will leverage each partner’s strengths. With the development of a recycling infrastructure in India, Shakti Plastic Industries will provide structure and formality to the waste collection process to secure materials to be used at the new venture. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and strong knowledge of the polymer markets in India.
“The circular economy will increasingly develop into a critical part of the plastic value chain in India, requiring solutions across the value chain to develop a sustainable world of plastic recycling.” says Rahul V. Podaar, Managing Director of Shakti Plastic Industries. “As we move towards becoming a value player in the circular economy, we will continue to seek opportunities for future growth. Together with LyondellBasell, we will be on the forefront in India taking significant steps to recycle rigid plastic waste which supports the government initiative to reuse recycled plastic in packaging applications.”
