Closed Loop Partners announced that its Closed Loop Infrastructure Fund and Closed Loop Circular Plastics Fund committed $5 million to help establish a state-of-the-art flexible film recycling plant in Minnesota. The project, led by the MBOLD coalition, brings the business community together with research institutions to develop a regional circular economy for flexible films and other plastic packaging materials in the Upper Midwest region of the U.S.
Closed Loop Partners’ funds represent investors including many of the world’s largest retailers, consumer goods companies, corporate foundations and material science companies. The investment in this project, launched by a coalition of Minnesota companies with MBOLD, aims to grow recycling infrastructure and increase the supply of recycled materials available for use. The facility will be the first in the United States for South African recycler Myplas. Slated to begin operations in spring 2023, this new 170,000-square-foot mechanical recycling plant will produce recycled LDPE pellets and food-grade HDPE pellets. It aims to recycle nearly 90 million pounds of material annually at full capacity, diverting these valuable materials from landfill.
“There is growing demand for recycled polyethylene across the value chain, yet only 11% of polyethylene film is recovered in North America today,” said Ron Gonen, Founder & CEO of Closed Loop Partners. “This new facility is an important piece of circular economy infrastructure needed to develop local market capacity to manage hard-to-recycle plastics. It’s projects like these that contribute to solutions to meet the demand for recycled materials, reduce greenhouse gas emissions, divert valuable materials from landfill and eliminate natural extraction.”
“This is a very important step to advance recycling capability in the U.S. and particularly in the Upper Midwest,” said Andrew Pieterse, CEO of Myplas USA. “We’re very excited and proud to establish our first plant in Minnesota with the State itself and many important global brands headquartered here, investing in and supporting this initiative. The funds and support provided by Closed Loop Partners will be critical to ensure our collective success.”