R7m distributed among six plastics recyclers
South Africa-based Polyolefin Recycling Company (Polyco) released the names of the six successful applicants who will be receiving total investment loans of R7-million over the next six months to fund existing polyolefin recycling operations, in November last year.
The company’s second request for proposals was made in July last year, inviting recycling companies to submit proposals for funding that would be used to grow recycling production volumes and have a direct impact on the sustainable growth of the polyolefin plastics recycling industry.
Polyco CEO Mandy Naudé notes these funds will increase the recycling capacity of plasticsbearing the polymer identification codes 2, 4 and 5 by almost 8 000 t/y or 24 000 t in the three-year cycle. A major benefit for Polyco, is that this capacity growth is directly linked to an increase in recycled tons, as the loans are guaranteed against the applicants’ projected volume growth.
“We received a total of 19 applications for the second round of funding for the 2014 cycle. Of these, we selected the six most suitable applications based on their business plans, financial stability and ability to guarantee waste source to deliver their projected growth,” explains Naudé.
Most of the applications received were for funding that would address bottlenecking or production constraints in recycling plants. “Several applicants were also looking at upgrading their wash plant facilities as this would improve the cleanliness and quality of their products. Investments in new extrusion, granulation and shredding equipment also featured prominently on the applicants’ business plans,” she says.
The successful applicants include Western Cape-based plastic recycling and manufacturing company Myplas, which is tackling the production constraints at its Stikland, Bellville plant. With Polyco’s assistance, the company will be able to unlock additional capacity over the next six months.
Myplas will be upgrading the wash plant and extruders, which will help the company meet a growing demand for their recyclate, which currently far outstrips their ability to supply. “Myplas is excited about the funding. It will help us unblock bottlenecks and increase our efficiencies in our washing and extrusion departments. This will ultimately increase capacity without adding too much overheads,” says Myplas director Johann Conradie.
To meet the growth in customer demand, Gauteng-based plastics recycling company Italian Plastic Technologies need improved shredding and washing facilities, and Polyco’s funding will help achieve this goal.
Unable to expand and grow without a cash injection, Polyco’s funding will allow Gauteng-based plastics recycling company Mountain View Plastics to acquire a modern automated and energy efficient wash plant facility, replacing outdated equipment that is unreliable and costly to maintain. Mountain View Plastics owner Riaan Brenkman comments: “We are truly honoured to be one of the successful applicants to receive a Polyco grant. It will enable us to increase our production output, while supplying our customers more consistently with a high-quality product.”
North West province plastics recycling company Polymark Recycling has been operational for the past 20 years. However, the business is currently at a stage where it needs to upgrade its washing and drying facilities to further business development. Partnering with Polyco will allow Polymark to significantly increase volumes and produce a higher quality product for clients on a plant that promotes sustainability, through the use of considerably less water.
Another Gauteng-based recycler, Emet will use Polyco’s grant to automate and improve operations, as well as introduce more energy efficient equipment. They will be moving their operation next door to their sister company, InWaste Green, in Tembisa, to limit logistics costs and to streamline operations. “Partnering with Polyco will help us cater for the huge demand for processed material, while allowing significant growth in recycling volumes,” says Emet co-owner Miri Moses.
Polyco’s funds will be assisting Eastern Cape-based recycling company Coastal Recycling to rebuild the business, which was severely damaged by a fire last year. The funds will go towards an extruder and granulator, to assist Coastal Recycling to service the East London area, an area that they have serviced for the past 20 years.
Polyco chairperson Jeremy Mackintosh states: “The Polyco board is pleased with the volume and quality of the opportunities that are being presented to Polyco for potential funding support. We can see that by working with the recycling value chain, we can play a role in job creation, enterprise development and in achieving the recycling rate targets as set in the Paper and Packaging Industry Waste Management Plan of South Africa.”
“It is Polyco’s goal is to achieve a recycling rate of 35%, or 239 000 t, recycled out of a total market share of an estimated 680 000 t by 2020. We cannot do it without the help of the collectors and recyclers around the country, who are already making a difference in the communities where they are operational. We extend our sincere congratulations to all the successful applicants and we look forward to seeing each of them grow and prosper, and are privileged to be part of this exciting journey for their businesses,” Naudé concludes.
Source: Engineering News
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