Resin supplier Nova Chemicals Corp. plans to open its first mechanical recycling plant, in Connersville, Ind., through a partnership with packaging giant Novolex Holdings Inc.
Novolex will operate the plant for Calgary-based Nova. In a news release, Nova officials said that the plant will be "a significant expansion" of its Circular Solutions business.
The plant will employ about 125 and will be able to produce more than 100 million pounds of Nova's Syndigo-brand recycled polyethylene resin per year. Production should be at commercial scale by 2025, with material available to customers in 2026.
Nova plans to expand its recycling footprint over the next several years to help it reach its 2030 goal of 30 percent recycled content as a share of its total PE sales, officials said. The firm recently announced its 2030 Roadmap to Sustainability Leadership targets, including its anticipated investment of between $2 billion and $4 billion by 2030 to expand its sustainable product offerings.
The firm also plans to decarbonize assets and explore new chemical recycling technologies, officials added.
Nova "continues to show clear leadership in reshaping plastics for a better, more sustainable world," President and CEO Roger Kearns said in the release. "We are committed to helping our customers achieve their recycled-content goals through a variety of business models."
The new plant will be one of Connersville's largest private employers. Officials said the site was selected for its access to abundant feedstock supply of post-consumer films from nearby metropolitan areas and easy-to-access rail service. Novolex is a leading developer of packaging products for foodservice and industrial markets and has operated recycling plants for more than 15 years.
"Novolex is proud to collaborate with Nova Chemicals' Circular Solutions and is excited by the opportunity to operate this state-of-the art recycling facility in the Hoosier state," said Novolex Chairman and CEO Stanley Bikulege. "Indiana has long been a hub for sustainability, innovation and business."
Bikulege added the new plant "will build on our experience of operating both our North Vernon plastics recycling facility in Indiana and our recycling plant in Wisconsin, as well as accelerate our commitment to support recycling and the circular economy."
Novolex, based in Hartsville, S.C., ranked as North America's sixth-largest film and sheet producer in the most recent Plastics News ranking, with annual sales estimated at $1.73 billion.
Nova is one of North America's largest PE resin makers. The firm employs almost 3,000 worldwide and has annual sales of $3.6 billion. Earlier this month, Nova and packaging firm Pregis Corp. said they have co-developed a sustainable packaging solution for food-safe applications in stand-up pouches and lay-flat bags. The package uses a Pregis film structure made with Nova's Syndigo-brand recycled PE.