Founded in 1991, Sorepla Industrie is one of the largest recyclers in Europe and the facility acquired by IVL consists of three production lines: Recycled PET (rPET); Recycled HDPE (rHDPE); and food-grade pellets, with a combined capacity of 52,000 tonnes a year.
IVL already has a significant recycling presence in France through its subsidiary, Wellman France Recyclage in Verdun, but the deal for Sorepla gives it additional capacity for food grade material as brand owners seek more sustainable packaging solutions.
Due to Sorema’s proximity to IVL’s existing recycling business, synergies of management and supply chain are expected to benefit the latter’s businesses.
The demand for food-grade rPET in Western Europe is expected to grow at a CAGR of 7 per cent from 2018-2021, and is currently outstripping supply. A growing emphasis on sustainability and circular economy objectives among packaging and consumer product manufacturers is expected to be amongst the key factors driving market growth.
Commenting on the acquisition, IVL’s chief executive Aloke Lohia said: “Indorama Ventures plays a key role in promoting the circular economy and environmental sustainability globally. We believe that the recycling of PET packaging is one of the most responsible solutions for the preservation of resources and the reduction of PET containers in landfills.”
Sorepla, which employs more than 50 staff, has a strong European network for bottle sourcing and good supply chain efficiencies.