DAK Americas is expanding into recycled PET resin in Argentina through the acquisition of CabelmaPET SA.
The deal, subject to antitrust review in Argentina, will bring 16,000 tons of recycled PET capacity to DAK America’s existing business in that country. Terms were not disclosed.
CabelmaPET’s bottle recycling facility in Buenos Aires, produces food-grade recycled raw material from PET bottles.
DAK Americas currently produces more than 190,000 tons of virgin PET resin at a company site in Zarate, Argentina.
Plans are to integrate post-consumer recycled content from the acquired CabelmaPET site into the company’s manufacturing “upon completion of process upgrades,” the company said.
“The acquisition not only has tremendous impact in terms of product sustainability, but it will greatly improve our trade balance, allowing us to substitute imports by establishing a raw material stream directly from within Argentina,” said Hector Camberos, president of DAK Americas Argentina SA, in a statement.
DAK Americas plans to integrate and market the recycled and virgin content as what the company calls “a single-pellet solution” under the company’s Laser+ brand of PET resins.
This, the company said, will help bottling and packaging customers by providing pellets with specified recycled content. This will eliminate the “need for customers to establish duplicate feed processes and blending processes to accommodate recycled materials into their respective product lines,” the company said.
DAK Americas is headquartered in Charlotte, NC, and is wholly owned by Alfa S.A.B. de C.V. of Monterrey, Mexico, the largest petrochemical company in Mexico.