DEG: USD 50 million for more PET recycling
Press Release from 2020-12-29 / DEG, Sustainability
“Blue loan” financing for Indorama Ventures
The mismanagement of plastic waste result in plastic ending up in the marine environment. To mitigate this environmental burden and support a circular economy, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, is providing a long-term loan of USD 50 million to the global plastic resin manufacturer and recycler Indorama Ventures Public Company Ltd (IVL). The funding is part of a “blue loan” financing package from the International Finance Corporation (IFC), part of the World Bank Group, and the Asian Development Bank (ADB) totalling USD 300 million, which has now been disbursed.
Less plastic waste in oceans
IVL is the leading producer of 100% recyclable PET plastic, which is widely used in beverage bottles. The financing will enable the company to expand its recycling capacity in Thailand, the Philippines, India, Indonesia and Brazil. This new capacity will recycle around 5 billion additional PET bottles per year from 2022, diverting plastic waste from the oceans, back into the circular economy. A feature of blue loan financing is that the funds raised are used to support the sustainable use of marine resources.
IVL is listed in the Dow Jones Sustainability Index and operates 125 production sites in 33 countries on five continents. Its customers include multinational companies from the food and beverage industry and from the healthcare, automotive and textile sectors. IVL employs over 24,000 people. The investments will help create sustainable long-term employment, as well as indirect jobs.
Circular economy conserves resources
“We have been working with Indorama Ventures for decades. Now we are financing their plans to expand PET recycling plants, primarily in Asia. These plants recycle post-consumer PET bottles, ensuring they do not end up in the oceans. We are pleased to be working closely with IFC and ADB on this important investment,” commented Monika Beck, a member of DEG’s Management Board.
“We are delighted to receive this Blue Loan and continue our relationship with DEG” said Yashovardhan Lohia, Chief Sustainability Officer, Indorama Ventures. “By financing and building the recycling infrastructure to recycling post-consumer PET bottles into new bottles, we are reducing waste and preserving our oceans. Giving waste an economic value, as feedstock for new bottles, also drives improvements in waste collection systems”.
IVL’s business roots go back to the 1970s: the original company Indorama Synthetics was founded in 1976 as a medium-sized spinning mill for the production of yarns in Indonesia. DEG has been supporting Indorama’s development for over 30 years.