South Africa-based paper and plastic packaging manufacturer and paper recycler Mpact has unveiled plans to commence a polyethylene terephthalate (PET) recycling plant for about $33.03m (ZAR350m).
The new plant is expected to process close to 29,000 tons of PET plastic bottles every year, which would generate about 21,000 tons of new raw material directly from what was earlier sent to landfill sites.
About 180,000 cubic metres of landfill space can be expected to be saved once the plant begins operations.
The company expects to create about 1,000 jobs.
Mpact chief executive officer Bruce Strong said: "Mpact is starting a new venture that will add an important dimension to our business. It is an excellent fit with our strategy and will enhance our position as a leading beneficiator of recyclables in South Africa."
The plant will be built in Wadeville, Germiston near Mpact's existing plastics manufacturing facilities and will be a part of Mpact Polymers, which is a newly formed operating entity within the company.
The Industrial Development Corporation has offered a loan of ZAR210m and another ZAR30m for its equity stake of 21% in Mpact Polymers. The company has received tax incentive from the Department of Trade and Industry.
