GDB restarts failed Myplas film recycling plant in Minnesota with new vision

National Harbor, Md. — Where others saw spectacular failure, GDB International Inc. saw tremendous opportunity.

The New Brunswick, N.J., based plastic film recycler has a long history in the business — more than 30 years — but GDB is a family company that has been successful by being fiscally conservative over the years.

After the new Myplas USA Inc. film recycling facility in Rogers, Minn., failed after only weeks of operation early in 2024, GDB viewed the brand new plant, initially constructed with the backing of some significant outside investors, as a chance to expand.

For GDB Chairman Sunil Bagaria it was not a move to be taken lightly. But it also was an opportunity too good to pass up.

"Here is a plant which was mismanaged, but there is nothing wrong technologically speaking, and we are getting at a bargain price, right? So why not take that jump?" he said during an interview at the recent Plastics Recycling Conference in National Harbor.

"Even though it was a little bit out of our reach when we took that step. But as an entrepreneur, what do you do?" he said.

So GDB did what GDB does, and made the move last September, taking control of the facility with the renewed support of two local corporate powerhouses that were also backers of the former Myplas USA site. Both General Mills Inc. and Schwan's Co. are part of a group of financial backers supporting the restart of the plant. Film maker Charter Next Generation was an investor in Myplas USA but is not financially involved with GDB's efforts.

GDB started production early this year and already has made some commercial sales, said Raj Bagaria, managing director of company subsidiary GBD Circular and Sunil Bagaria's son.

Raj Bagaria is on the ground in Minnesota to oversee transformation of the facility into a production approach that GDB has found successful at the company's other locations. GDB Circular, which also has the backing of plastics industry funded non-profit Alliance to End Plastic Waste and circular economy investment firm Closed Loop Partners, has a network of plastic recycling facilities.

"It's been almost a six-month process in getting the facility up to the GDB code of standards. This is our ninth facility in the U.S., so we have systems of engineering, of washing, of extruding that we wanted to bring," Raj Bagaria said.

"We spent 30 years developing processes that work for us. So just because we bought a plant does not mean that plant might work for someone else's feedstock or someone else's processes, but it will work for us. So, certainly, tweaking is there, changing up pieces of the line, adding or removing," Raj Bagaria explained. "Our focus has been on getting the plant operational, start seeing some money. We're a small business. Start making revenue."

GDB, until now, has never had an equity partner, but the opportunity in Minnesota caused the company to rethink that approach. The company, while welcoming investors in Rogers, will rely on what's worked for more than three decades. "This is our 32nd year of operations. We are a conservative company," Raj Bagaria said, with management focus on operations. "Really our key to success is being on the floor, watching it get done. I'm there every week," he said.

The Rogers location has two production lines, with one currently in operation. Plans are to have both lines running by late summer or early fall. "We've made really good progress there, and we will continue to make good progress," Raj Bagaria said.

GDB is focusing on three grades right now, low density polyethylene, linear low density polyethylene and a mixed product for what he calls "slightly lower end applications with higher volumes."

Construction of the Rogers plant came with much fanfare as a consortium of Minnesota businesses provided financial backing for the project that was organized by an economic development group called MBOLD. Myplas USA, an arm of a South African recycler, was selected to develop the facility that ultimately closed only weeks after opening.

GDB took over the location as lead investor seven months after Myplas USA surprisingly closed in February 2024 after only opening in December 2023. The short operational stint came after nearly two years of planning and promotion of the project as a game-changer in the film recycling business due to its collaborative backing.

MBOLD, which is an arm of the Minneapolis St. Paul Regional Economic Development Partnership, was a key in bringing together a consortium of companies to support the original Myplas USA project. MBOLD is a coalition of Minnesota companies, researchers and nonprofit groups.

Despite the Myplas USA failure, the collaborative approach makes sense to new owners.

That's because joining a recycler with brand owners in Rogers provides supply and demand assurances for both sides, Sunil Bagaria said. "Two different things are now coming together. Brands have been very supportive," he said.