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Viridor and Procter & Gamble agree R-HDPE supply contract

February 20/2020

MOSCOW (MRC) -- UK recycling and waste management major Viridor has signed a five-year contract with Procter & Gamble (P&G) for the supply of recycled high density polyethylene (R-HDPE), said the company. 

The companies, both founding partners of the UK Plastics Pact, are committed to inspiring positive action on the environment and driving circular change.

Consumers will see evidence of this on their supermarket shelves in P&Gs Ariel laundry product range as previously announced which aims to reach up to 50% recycled content in its liquid bottles as of 2020. 

Viridors supply of HDPE (high-density polyethylene) to P&G will save the equivalent of 200 million bottles of virgin plastic over five years.

P&G Purchases Group Manager Adam Selby commented: "Viridor is an established innovator in the area of sustainable packaging.  This collaboration accelerates P&Gs 2030 goal to reduce our use of virgin petroleum plastic in packaging by 50%.

"As a founding member of The Alliance to End Plastic Waste, we are committed to helping to minimise and manage plastic waste and promote solutions like this for used plastics."

However, European Food Safety Authority (EFSA) contamination restrictions on food-grade approved material sourcing mean that only the UK is able to currently produce food-grade R-HDPE.

UK milk bottles are manufactured from HDPE in the rest of Europe they are manufactured from polyethylene terephthalate (PET) allowing a separated stream of post-consumer material suitable for food-grade production although this is limited to 100,000 tonnes/year.

Food-grade pellets are structurally short. Although players in mainland Europe are researching sorting techniques to produce food-grade pellets, most remain cost prohibitive and are not expected to enter the market in 2020. As a result, cosmetics and domestic goods packaging producers are having to turn to other grades of R-HDPE, such as natural.

Long-testing cycles of around 18 months have so far prevented a sharp increase in consumption. Testing cycles are expected to increase in 2020 and consumption is expected to rise as a result. Packaging firms have a preference for natural material because of its higher attractiveness to end-use consumers when on the shelf, and because it is easier to masterbatch. As a result of increased packaging consumption, 2019 saw prices trade above virgin for the first time.

As MRC informed earlier, Karpatneftekhim (Kalush, Ivano-Frankivsk region), Ukraine"s largest petrochemical plant, intends to resume its high density polyethylene (HDPE) production in the third decade of March after a forced outage. The plant"s representative and customers said the Ukrainian producer plans to launch its HDPE production on 20 March. The shutdown of polyethylene (PE) production took place in early January and was caused by high prices of material, which did not match the world prices of polymer.

The situation in the feedstocks markets has changed dramatically for the past several week, thus, oil prices fell significantly, which suggests a proportional reduction in net cost of PE production. As reported earlier, Karpatneftekhim"s overall HDPE output exceeded 93,000 tonnes in 2019, up by 4% year on year.
Author:Anna Larionova
Tags:PE, HDPE, packaging, packaging, packaging, Contract, Most, Trade, Karpatneftekhim.
Category:General News
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