Plastic Technologies Inc. has formed a new subsidiary to sell the company's compact, modular recycling system globally and expects that anywhere from eight-18 plants, capable of producing 10 million pounds of its patented recycled LNOc food-grade PET pellets, will be built during the next two years.
We expect two plants to be built in the United States, 2-4 in Mexico and Canada, and 4-12 in South America in the next 24 months with the next plant built and operational near year-end, said Steve Hawksworth director of the new subsidiary, PTI Recycling Systems LLC, in an interview June 22 at NPE2009.
That's an ambitious game plan to expand the use of the LNOc process and LNOc technology as the first full-scale commercial plant, operated by Plastic Technologies' sister company, Phoenix Technologies in Bowling Green, Ohio, just began operating last month. Plastic Technologies and PTI Recycling both are based in nearby Holland, Ohio.
Plastic Technologies (Booth S26081) will be responsible for expansion outside the U.S., Canada and Mexico, and Phoenix for expansion in the three North American Free Trade Agreement countries.
Plastic Technologies believes that the lower capital investment threshold and the need to have plants nearer to source material will drive that growth. Plastic Technologies estimates that the total cost of ownership of its modular recycling system to be 40 percent less than other PET recycling technologies that require capital investments as high as $10 million.
We believe this technology has the potential to become the new global standard for [recycled] PET production, said Craig Barrow, president of Plastic Technologies. These plants have a smaller physical and carbon footprint and use no water.
The international level of interest has been extraordinarily high, he said.
Recycling in general, and recycling of PET and other polymers, is not a phenomenon that is going to away quickly, he said. More and more areas are becoming interested in recycling. There will be a need for a more local, modular approach [in the] long term to reduce transportation costs.
The modular recycling system fits into 2,500 square feet and includes a grinder that converts the recycled flake into an extra-small powder, a compactor to compress the powder into pellets and a standard resin dryer. Conair Group Inc. in Cranberry Township, Pa., will build the processing equipment.
We believe in a local 'consume, collect, convert' approach, said Hawksworth. By locating production closer to resin users, you improve supply times and reduce the carbon footprint.
The total cost of ownership of operating, upgrading and keeping production moving is where these plants really shine, Hawksworth said. It requires only one operator who you can afford to train very well. It is nimble in that you can use a variety of energy sources from natural gas to recycled methane gas to liquefied petroleum gas.
Hawksworth said there has been a high level of interest in South America, Europe and Asia.
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