Mpact to build R350 million PET recycling plant in South Africa

KENNEWICK (Scrap Monster): Paper recycling major Mpact Limited has announced plans to enter into plastic recycling sector by constructing a R350 million polyethylene terephthalate (PET) recycling plant.

The state-of-the-art plant will be built in collaboration with Industrial Development Corporation (IDC) and will be located in Wadeville, Germiston. The plant will be built by the newly formed Mpact Polymers. Mpact will hold 79% stake in the new company. The balance 21% stake will be held by IDC.

According to Mpact management, the opening of the plant would mark the entry of the company into plastic recycling sector, which will add new dimension to its business. The plant is expected to create around 1,000 direct and indirect jobs altogether.

The capacity of the plant is estimated at 29,000 tons of PET bottles per annum. Once operational, the plant will generate nearly 21,000 tons of new raw material from waste materials that otherwise would be sent to landfills, thereby saving nearly 180,000 cubic metres of landfill space.

The plant is scheduled to be commissioned during H2 2015.

Mpact Limited, formerly Mondi Packaging South Africa, is one of the largest paper and plastic packaging businesses in southern Africa, with 31 operating sites, 24 of which are manufacturing operations, based in South Africa, Namibia, Mozambique and Zimbabwe. Mpact employs 3,790 people.