LyondellBasell and Shakti Plastic Industries Sign Memorandum of Understanding (MoU) to Promote Mechanical Recycling in India
ROTTERDAM, The Netherlands, Oct. 21, 2022 /PRNewswire/ -- LyondellBasell and Shakti Plastic Industries, India's largest plastic waste collection and recycling 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 post-consumer waste from rigid packaging and produce 50,000 tons of recycled polyethylene (PE) and polypropylene (PP) per year, equivalent to the single-use plastic waste produced by 12.5 million citizens. The new facility is set to become the largest mechanical recycling plant in India and is estimated to start operations by the end of 2024. LyondellBasell will market the recycled products produced by this joint venture, adding volume to its Circulen range. Recover of PE and PP materials to help meet the growing demand from converters and brand owners in India for recycled polymeric materials.
"The proposed joint venture will allow us to address the plastic waste issue in the world's second most populous country and expand our circular polymer product offering to India," says Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low CarbonSolutions. "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 build on the strengths of each partner. With the development of a recycling infrastructure in India, Shakti Plastic Industries will bring structure and formality to the waste collection process to secure the materials to be used in the new business. LyondellBasell will apply its long-standing leadership in innovative plastics production technology, its extensive product development experience and its strong understanding of the polymer markets in India.
"The circular economy will increasingly become a critical part of the plastic value chain in India, requiring solutions across the value chain to develop a sustainable world of plastic recycling," said Rahul V. Podaar. , CEO of Shakti Plastic Industries. "As we move to become a value player in the circular economy, we will continue to look for opportunities for future growth. Together with LyondellBasell, we will be at the forefront in India taking significant steps to recycle rigid plastic waste supporting the government initiative to reuse recycled plastic in packaging applications.
About LyondellBasell As a leader in the global chemical industry, LyondellBasell strives every day to be the safest, best operated and most valued company in our industry. The company's products, materials and technologies are promoting sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places a high priority on diversity, equity, and inclusion and moves forward for good with an emphasis on our planet, the communities in which we operate, and our future workforce. The company prides itself on its world-class technology and customer focus. LyondellBasell has stepped up its circularity and climate ambitions and actions to address the global challenges of plastic waste and decarbonization and recently announced new initiatives to expand its mechanical and advanced recycling footprints. In 2022, LyondellBasell was named one of FORTUNE magazine's "World's Most Admired Companies" for the fifth consecutive year. For more information visit www.lyondellbasell.com or follow @LyondellBasell on LinkedIn
About Shakti Plastic Industries Founded in 1969, The Shakti Plastic Industries is a Mumbai-based company that recycles all types of plastic waste and is one of the leading recyclers of polymer waste in India. Under the leadership of our founder, Vishwanath Podaar, The Shakti Plastic Industries has built on a legacy spanning more than three generations. Shakti Plastics has been the industry's leading expert in post-consumer and industrial waste management for the past fifty years. The company is engaged in the collection and recycling of flexible, MLP, rigid, mixed plastics and all other types of plastic. The company has a collection system spread across PAN India and Dubai, operates six recycling plants in India and one in Dubai.
Shakti provides Extended Producer Responsibility (EPR) solutions to over 450 major brands across India, ensuring best practices in collection, logistics and recycling with end-to-end transparency and traceability; Help brands optimize their ESG performance. The company's R&D and innovation teams have developed several award-winning products from plastic waste using up to 100% recycled content. The company is tech-enabled, has its own digital space and has invested in a digital start-up working on end-to-end traceability, blockchain, web3 and NFT-based solutions for plastic waste management. For more information, visit www.shaktiplasticinds.com or follow @theshaktiplasticindustries on LinkedIn.
Forward-Looking Statements for LyondellBasell Statements in this release regarding matters that are not historical facts are forward-looking statements. These forward-looking statements are based on management assumptions that are believed to be reasonable at the time they were made and are subject to significant risks and uncertainties. Actual results could differ materially from projections, anticipated results or other expectations expressed in this release, including, without limitation, our ability to complete the described transaction or the timing of such transaction; the successful construction and operation of the facilities described in this release; our ability to obtain all necessary regulatory approvals; our ability to meet our sustainability goals, including the ability to increase production of recycled and renewable polymers to meet our goals and forecasts; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where the company's and its affiliates' operations are located. Although these statements and projections are made in good faith, LyondellBasell and its management cannot guarantee that anticipated future results will be achieved. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2021, which can be found at www.lyondellbasell.com on the Investor Relations page. LyondellBasell undertakes no obligation to publicly update or revise any forward-looking statement made in this document or any other forward-looking statement made, whether as a result of new information, future events or otherwise.
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