Nova Chemicals has taken two more steps on the road to sustainability.
Calgary, Alberta-based Nova, one of North America's largest polyethylene resin makers, announced Dec. 8 it would sell recycled low density and linear low density PE made by Revolution Plastics of Little Rock, Ark. Nova is Revolution's exclusive partner in the deal.
Revolution makes plastic films for consumer and industrial products and packaging. The company recaptures these films after use to recycle and reuse in new products. The agreement will use some of this closed-loop plastic. Nova will begin to offer these resins in January.
"Working with Revolution, a company that shares our passion for advancing the circular economy, we will further widen our product offerings for recycled plastics," Nova President and CEO Luis Sierra said in a news release. "Together, we will offer a portfolio of PCR [post-consumer resin] that is available immediately to enable our customers and brand owners to meet their sustainability goals."
PCR demand is expected to increase fivefold by 2025, according to a recent industry report, as brand owners work to reach ambitious goals for recycled content in packaging. Recycled grades offered by Nova in the Revolution deal can be used in flexible packaging applications such as heavy-duty sack, shrink and stretch wrap, agricultural film, poly mailers and pouches, as well as a range of molded goods.
"Creating a circular economy for plastics is at the core our company's mission," Revolution CEO Sean Whiteley said. "For more than 20 years, we've been putting high-quality PCR back into new flexible packaging, and we're excited to expand the positive sustainability impact to more applications with Nova Chemicals"
Nova PE Marketing Vice President Greg DeKunder added that the Nova/Revolution relationship "will have a significant impact on the market for recycled plastics."
"Joining forces enables [Nova] to be a one-stop shop for our customers' PCR needs," he said.
The deal adds to a busy year for Revolution, which was purchased in 2019 by private equity group Arsenal Capital Partners. In October 2020, Revolution announced it was investing $20 million to expand production of film from recycled materials in Little Rock.
A few weeks later, Revolution announced it was buying Polar Plastics Corp., a Minnesota-based maker of film, sheeting and bags, from private equity firm Spell Capital Partners.