A South African company will build a multimillion-dollar plastic film recycling plant in Minnesota with some local help.
Myplas (PTY) Ltd.'s U.S. subsidiary is teaming with MBOLD, a coalition of Minnesota companies, researchers and nonprofit groups, to establish the new location in Rogers, a suburb in the Minneapolis-St. Paul metropolitan area.
Film maker Charter Next Generation also is agreeing to purchase resin recycled by Myplas USA Inc. to create new products.
Recycling at the 170,000-square-foot location, expected to cost $24 million to build, is expected to begin next spring and include both high and low density polyethylene films. The facility, once at full capacity, is expected to handle about 90 million pounds of recycled film each year.
"Our partners' commitment, investment and innovative thinking, paired with Myplas' technical expertise, will be transformative for the entire region. We can't wait to get started," CEO Andrew Pieterse of Myplas USA said in a statement.
General Mills Inc., Schwan's Co. and Next Generation are all described as lead investors in providing $9.2 million for the project. Target Corp. and Ecolab Inc. are supporting investors, MBOLD said.
The Alliance to End Plastic Waste and Closed Loop Partners also are providing debt financing.
"This collaboration with MBOLD and Myplas USA is forging a new future for packaging innovation. It will broaden our sustainable film portfolio, create an urgently needed solution for the region and help meet the growing demand for recycled content in packaging," Charter Next Generation CEO Kathy Bolhous said in a statement.
Charter Next Generation has agreed to purchase most of the recycled resin produced by Myplas in Minnesota for two years after operations begin, the company said.