ROTTERDAM, Netherlands, Oct. 20, 2022 /PRNewswire/ -- LyondellBasell and Shakti Plastic Industries, India's largest plastic scrap recycler and waste collection 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 rigid packaging post-consumer waste and produce 50.000 tonnes of recycled polyethylene (PE) and polypropylene (PP) per year, equivalent to the single-use plastic waste produced by 12.5 million citizens. It is envisaged that the new facility will become the largest mechanical recycling plant in India and is estimated to start at the end of 2024. LyondellBasell will market the recycled products produced by this joint venture adding volume to its Circulen Recover range of existing PE and PP materials to help meet increasing demand by converters and brand owners in India for recycled polymer materials.
"The proposed joint venture will allow us to address the issue of plastic waste in the second most populated country in the world and expand our circular polymer product offering to India," says Yvonne van der Laan, LyondellBasell Executive Vice President, Circular and Low Carbon Solutions. "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 leverage each partner's strengths. With the development of a recycling infrastructure in India, Shakti Plastic Industries will provide structure and formality to the waste collection process to secure materials to be used at the new venture. LyondellBasell will apply its long-standing leadership in innovative plastic production technology, vast experience in product development and strong knowledge of the polymer markets in India.
"The circular economy will increasingly develop into a critical part of the plastic value chain in India, requiring solutions across the value chain to develop a sustainable world of plastic recycling." says Rahul V. Podaar, Managing Director of Shakti Plastic Industries. "As we move towards becoming a value player in the circular economy, we will continue to seek opportunities for future growth. Together with LyondellBasell, we will be on the forefront in India taking significant steps to recycle rigid plastic waste which supports 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 advancing sustainable solutions for food safety, access to clean water, healthcare and fuel efficiency in more than 100 international markets. LyondellBasell places high priority on diversity, equity and inclusion and is Advancing Good with an emphasis on our planet, the communities where we operate and our future workforce. The company takes great pride in 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 has recently announced further initiatives to expand its mechanical and advanced recycling footprints. In 2022, LyondellBasell was named as one of FORTUNE Magazine's "World's Most Admired Companies" for the fifth consecutive year. For more information, please 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 India's leading recyclers of polymer waste. Under the guidance of our founder Mr. Vishwanath Podaar, The Shakti Plastic Industries has built on a legacy of over three generations. Shakti Plastics has been the leading industry expert for post-consumer and industrial waste management for the past Fifty years. The company is engaged in the collection & recycling of Flexible, MLP, Rigid, Mixed plastics and all other types of plastic. Company has a collection system spread by PAN India and Dubai, operates six recycling plants across India and one in Dubai.
Shakti provides Extended Producers Responsibility (EPR) solutions to 450+ Major Brands across India ensuring best practices in collection, logistics and recycling with end-to-end transparency & traceability; Helping brands optimize their ESG Performance. The company's R&D and Innovation teams have developed several award-winning products out of plastic waste using up to 100% recycled content. The company is technology-enabled, has its own digital space and has invested in a digital start-up working in end-to-end traceability, blockchain, web3, and NFTs-based solutions for plastic waste management. For more information, please visit www.shaktiplasticinds.com or follow @theshaktiplasticindustries on LinkedIn.
Forward-Looking Statement for LyondellBasell
The statements in this release relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially from the projections, anticipated results, or other expectations expressed in this release, including, but not limited to, our ability to complete the transaction described 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-based polymers to meet our targets and forecasts; and general economic conditions in geographic regions or markets served by LyondellBasell and its affiliates, or where operations of the company and its affiliates are located. While 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 assumes no obligation to publicly update or revise any forward-looking statements made herein or any other forward-looking statements made, whether as a result of new information, future events, or otherwise.
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