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Nestle to invest USD2.1bn in virgin-to-recycled polymer packaging shift

January 17/2020

MOSCOW (MRC) -- Nestle is to invest up to Swiss francs (Swfr) 2bn (USD2.1bn) to shift packaging production from virgin to recycled polymers over the next five years, the the producer.

The company is to source up to 2m tonnes of food-grade recycled plastics and has allocated Swfr1.5bn up to 2025 to pay a premium for those materials as part of a drive to create a viable market for those products. The company will seek operational efficiencies to keep the process revenue neutral.

Nestle will use Swfr250m of the funding to set up a venture capital fund to back start-ups developing new packaging materials, refill systems and recycling solutions. Nestle has committed to making 100% of its packaging recyclable or reusable by 2025.

"In addition to minimising plastics use and collecting waste, we want to close the loop and make more plastics infinitely recyclable," said Nestle CEO Mark Schneider.

The company did not disclose what proportions of different plastic grades it would be investing in sourcing.

Packaging innovation, including new materials, refill systems and recycling solutions, is another key challenge on the path towards a waste-free future. In addition to its significant inhouse research through the Nestle Institute of Packaging Sciences, the company will launch a CHF 250 million sustainable packaging venture fund to invest in start-up companies that focus on these areas.

These two initiatives come in addition to Nestles major ongoing efforts in research, sourcing and manufacturing to make its packaging recyclable or reusable and contribute to its goal to achieve zero net greenhouse gas emissions by 2050. As part of the companys packaging commitment and to increase transparency, Nestle will continue to outline further initiatives and provide regular progress updates.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.


mrcplast.com
Author:Anna Larionova
Tags:PS, PE, packaging.
Category:General News
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