WM of Houston has announced that it has agreed to acquire a controlling interest in the US operations of Houston-based Avangard Innovative. The business will operate as Natura PCR. It is an independent company and is expected to expand its recycling capacity to produce an estimated £400 million annually. Volume of used resin (PCR) over 5 years.
The transaction is expected to close in the second half of 2022, subject to customary closing conditions, including regulatory approvals.
Through the Natura PCR, WM offers new recycling capabilities to its customers, including commercially used films such as pallets, furniture films, plastic stretch wrap on grocery bags and in some cases shrink wrap around food and beverage containers. We hope to provide a circular solution for plastic wraps and clear plastic wraps.
WM President and CEO Jim Fish said: “WM’s core materials supply capabilities, with a head start and knowledge provided by Avangard’s U.S. operations, will enable Natura PCR to expand its recycling options to WM as a key component of its continued growth strategy in recycling. of customers, the potential to reuse film is currently untapped and has impacted many commercial customers, helping customers close the loop and get more recycled material can help bring it to the store shelf.”
Dow, a leading materials science company in Midland, Michigan, has been working with WM to help increase plastic recycling rates and create sustainable solutions in packaging, infrastructure, and consumer applications. I was. Dow has also been working with Avangard Innovative since early 2020, purchasing the company’s PCR pellets to manufacture his REVOLOOP, Dow’s line of products containing PCR content.
“We have been working with both companies to increase the use of recycled plastics in Dow products. Natura PCR will integrate capabilities that will unlock more options for hard-to-recycle plastics for the industry,” he said. says Nestor de Mattos. Vice President of Packaging and Specialty Plastics for Dow. “Natura PCR will further expand waste-to-market solutions at scale across North America, advancing our goal of helping divert plastics from landfills to circular solutions.”
Natura PCR focuses on the mechanical recycling of some of the most complex plastics in today’s recycling stream, film and soft plastics, transforming these materials into PCR and developing new products to replace virgin materials. make it available for manufacturing. These streams account for almost a quarter of plastic production today, but only about 5% is currently recycled.
Demand for PCR is growing as consumer packaging companies commit to using recycled content and in response to pressure from consumers and regulators to increase the PCR content of the packaging materials they manufacture. It is expected that WM has demonstrated a proven track record of collecting materials from commercial streams as the feedstock required to generate PCR content, and its material sourcing expertise enables PCR pellets that Natura PCR can generate for use in new products. We expect to be able to increase the supply of
Avangard Innovative CEO Rick Perez said: “WM’s significant involvement in the recycling business over his 30 years, combined with strong relationships with Dow and other customers, will enable Natura PCR to deliver the most innovative end-to-end circular economy solutions on the market. set as.”
Natura PCR plans to expand recycling capacity at Avangard’s existing plant in Waller, Texas, and build new plant capacity in the Midwest. Natura PCR is primarily owned and controlled by WM. Avangard and affiliates will retain a joint minority interest in Natura PCR. WM expects a return on investment comparable to its previously announced automation investment in single-stream recycling.
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