Calgary-based Nova Chemicals has signed a deal to supply packaging maker Amcor with polyethylene from its proposed first mechanical recycling plant. The recycled PE will be used in Amcor’s flexible packaging films.
The supply agreement will see Amcor purchase recycled PE from Nova’s Syndigo brand. The resin will be manufactured at Nova’s first mechanical recycling facility in Connersville, Ind. The new facility was announced in July and should be at commercial scale by 2025, with material available to customers in 2026. Nova has partnered with packaging giant Novolex Holdings Inc. on the venture. Novolex will operate the facility, which will employ about 125 and produce more than 100 million pounds of Syndigo resin per year.
"This is an exciting opportunity for us to supplement our rPE supply in support of our target to achieve 30 percent recycled material usage across our global portfolio by 2030," said Fred Stephan, president of Amcor flexibles North America. "Incorporating rPE into flexible packaging films helps brand owners meet voluntary commitments on recycled content targets, reduce greenhouse gas emissions, and keep plastic waste in the economy and out of the environment."
Nova plans to expand its recycling footprint across North America over the next several years to help reach its ambition of 30 percent share of total PE sales from products containing recycled content.
Amcor has also set itself recycled content targets of 30 percent, having tripled its target from 10 percent in 2022. Along with using more recycled content, the company has pledged to make all products recyclable, reusable or compostable by 2025. A total of 74 percent of Amcor's production by weight already is designed to be recycled, the company said last year.