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

Automakers look under the hood for the next lightweighting opportunities

August 20, 2014 1:06 pm ET

The automotive industry's current favorite target for lightweighting efforts is the powertrain, according to a recent survey.    More

Image

GameDay Challenge expands the competition to the recycling bin

August 20, 2014 10:23 am ET

GameDay Recycling Challenge is returning this year as college football stadiums will compete to see which school produces the least amount of waste...    More

Image

Faerch Plast doubling capacity in UK

August 20, 2014 9:42 am ET

R. Faerch Plast A/S, one of Europe’s leading producers of plastic containers for the food industry, is set to double production...    More

Image

Pactiv selling building products unit to Ireland's Kingspan

August 19, 2014 3:54 pm ET

Irish building material manufacturer Kingspan Group plc is acquiring the insulation business of Lake Forest, Ill.-based Pactiv Building Products for...    More

Image

Flexible film waste-to-oil pilot project continuing in California

August 19, 2014 3:19 pm ET

A recent decision to discontinue operations at a plastics waste-to-oil site in Portland, Ore., is not impacting a pilot program aimed at hard-to-recyc...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events