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Nova enters PCR via food-grade rHDPE deal with Merlin

September 04/2020

MOSCOW (MRC) -- Nova Chemicals (Calgary, Alberta, Canada) has entered the post-consumer recyclate (PCR) market through a partnership with Merlin Plastics (Delta, British Columbia, Canada), according to Chemweek.

Under the agreement, Nova will finance a “multimillion-dollar” project supporting Merlin’s expansion into high-density polyethylene (HDPE) PCR suitable for food-contact applications. Merlin will, in turn, supply up to 30 million pounds/year of the material to Nova under a five-year agreement.

“This partnership with Merlin and our forthcoming suite of PCR-containing resins will help meet our customer and brand-owner needs and expand high-quality PCR supply for use in consumer packaging,” says Luis Sierra, president and CEO of Nova.

Merlin is Canada’s largest plastics recycler, with operations in British Columbia and Alberta.

Nova expects the Merlin HDPE PCR to obtain non-objection letter (NOL) status from the US FDA during the first half of 2021. The company will begin sales at the same time to customers in the US and Canada.

Nova says its portfolio of PCR will also include non-NOL recycled HDPE and linear low-density polyethylene (LLDPE) sourced from North American recyclers. Supply agreements are still being negotiated.

Nova says it is not actively pursuing the acquisition of a recycler.

“Initially, the PCR produced as a result of our investment will divert PCR from lower-value applications such as plastic lumber or detergent bottles into higher-quality applications such as flexible packaging,” says Nova. “However, by demonstrating that milk, water, and juice jugs can have a second life in high-value consumer packaging applications, we believe it will help enable a ‘virtuous cycle’ over time where more high-quality packaging is binned, collected, and recycled into FDA NOL recyclate as market demand grows.”

As MRC reported previously, early this summer, NOVA Chemicals (Calgary, Alberta, Canada) says it has developed a new technology for the production of high-density biaxially-oriented polyethylene (HD-BOPE) films. Biaxial orientation extends the physical characteristics of high-density polyethylene (HDPE) films, enabling the manufacture of fully recyclable high-performance film structures without mixing resin types.

According to MRC's ScanPlast report, Russia's HDPE production totalled 1,040,000 tonnes in the first seven months of 2020, up by 84% year on year. ZapSibNeftekhim accounted for the main increase in the output.

NOVA Chemicals Corporation is a plastics and chemical company headquartered in Calgary, Alberta, Canada, and is wholly-owned ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.
Author:Margaret Volkova
Tags:PE, LLDPE, HDPE, BOPET films, recikling, packaging, Nova Chemicals, Canada, USA.
Category:General News
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