Klöckner Pentaplast Group says it plans a "multimillion-dollar investment" to expand its post-consumer recycled PET extrusion capacity in North America.
The company said it is still deciding on the precise location for the expansion, and will announce at a later date which of its eight North American sites is best situated for the project to support KP's thermoformed protein and sustainable consumer packaging customers.
KP said it will add about 17,500 metric tons of capacity, including "special supercleaning technology" to meet demand for health packaging and consumer applications.
Sustainable post-consumer PET solutions are increasingly needed in the strategy market, the company said. Consumers are demanding curbside recycling options and support closed-loop packaging.
"As major brands announce robust, sustainability initiatives that includes post-consumer and recyclable packaging, KP will be positioned to service those market needs for the foreseeable future," CEO Scott Tracey said.
Globally, this is the fourth major expansion for KP. In March it announced a 30 percent capacity expansion at its Cotia, Brazil location and in June KP broke ground at its central Virginia location that increased the company's pharmaceutical films capacity by 6,000 metric tons.
Founded in 1965, KP has 32 plants in 18 countries and employs more than 5,900 people in over 60 locations.