DAK Americas focusing on PET growth and recycling in Argentina

By Bob Moser
Correspondent

Published: June 18, 2014 3:53 pm ET
Updated: June 19, 2014 2:59 pm ET

Image By: Bob Moser Emilio Larranaga, sales and marketing director for DAK Americas' PET resins group in Argentina.

Related to this story

Topics Materials, Sustainability, South America, Packaging, Recycling, Materials Suppliers

BUENOS AIRES — DAK Americas expects to introduce local production of its heat-set Laser+HS PET resin for hot-fill applications with PepsiCo and Coca-Cola Co. in the third quarter of this year, a product long available in the United States but under review by Argentine clients for more than two years, the company’s sales and marketing director told Plastics News during Argenplás.

As part of the Alpek unit of Mexican conglomerate Alfa SAB de CV, DAK Americas wants to help stimulate hot-fill potential in Argentina and neighboring markets after seeing regional PET consumption hit a ceiling in recent years, said Emilio Larranaga, sales and marketing director for PET resins in Argentina.

DAK is currently Argentina’s only PET producer, having acquired its local plant from Eastman Chemical Co. in 2008. The company produced roughly 195,000 metric tons of PET last year while operating at full capacity, with 80 percent of its resin sold domestically.

Following DAK’s acquisition in May of recycled PET resin producer CabelmaPET SA in Buenos Aires, the company is integrating operations and plans to start producing a single-pellet solution by the end of this year, said Marcelo Luis Blois, corporate affairs manager in Argentina.

CabelmaPET’s recycling facility reprocesses as much as 23,000 metric tons of bottles per year, producing more than 12,000 metric tons of post-consumer PET pellets in 2013, sold mainly to Coca-Cola.

Many DAK Americas clients are operating separate lines for virgin and recycled PET resins that mix the two on-site. With the CabelmaPET recycled resin now in-house, DAK’s single pellet solution will include 25 percent recycled content, Blois said.

The CabelmaPET acquisition will also help DAK eventually reduce its dependence on imported PET raw materials in Argentina, of which the company now imports 100 percent.

“Argentina has no infrastructure in place, outside of natural gas, to produce PET and key petrochemicals locally,” Larranaga said. “Our goal is that by 2016, CabelmaPET will supply 25 percent of our total resin needs.”

It’s an admittedly lofty goal within two years, and will require DAK to work closely with local and state governments to stimulate growth for PET bottle collection in Argentina.

The national PET collection rate is roughly 30 percent now, Larranaga said, but that rate needs to reach at least 50 percent for DAK to self-supply one fourth of its resin needs. The company is still only developing a game plan on how to stimulate collection growth, and couldn’t provide details on an investment budget for the project.


Comments

DAK Americas focusing on PET growth and recycling in Argentina

By Bob Moser
Correspondent

Published: June 18, 2014 3:53 pm ET
Updated: June 19, 2014 2:59 pm ET

Post Your Comments


Back to story


More stories

Image

Ferro sells another piece of its plastics business

December 19, 2014 3:33 pm ET

Ferro Corp. has sold its North American polymer additives business to a private equity firm for $154 million in cash.    More

Image

Antimicrobial polymers firm TiFiber launching pilot production in Ark.

December 19, 2014 10:58 am ET

TiFiber Inc., which makes synthetic compounds to control dangerous microorganisms, will locate a pilot production facility and its future company...    More

Image

Patel named LyondellBasell CEO

December 19, 2014 9:56 am ET

Bhavesh V. “Bob” Patel has been named CEO of Houston-based polyolefins producer LyondellBasell Industries NV, effective Jan. 12.    More

Image

Momentive to get a new name in January

December 19, 2014 9:45 am ET

Momentive Specialty Chemicals Inc. will change its name to Hexion Inc., effective Jan. 15.    More

Image

Thailand's SCG Chemicals buying Norwegian chemical firm Norner

December 19, 2014 9:11 am ET

Thailand's SCG Chemicals Co. Ltd. has announced it has acquired 51 percent of the shares in the independent petrochemical company Norner Holding AS fr...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events