In a new strategic investment, Coca-cola is making steps towards signing a contract with Loop industries for a supply of 100% recycled PET (rPET) plastic to accelerate the increased use of recycled materials in the creation of its bottles. As part of the packaging process, the PET plastics are transformed into bottles for containing the beverage using the pet bottle blowing machines.
As part of the Coca-Cola System’s global vision to work toward a World Without Waste (WWW) in its product packaging by early 2020, CCEP expects to be using Loop rPET for its sole supply of plastic. Subsequently, the plastics will be subjected to the pet bottle blowing machines for molding of the plastics into the desired shape and size suitable for containing different volumes of the beverage. Loop has a main focus on providing enhanced recycling technology that makes available new sources of high-quality rPET, which previously could not be used due to the colorant or other recyclability obstacles.
According to Ron Lewis, the chief supply chain officer of CCEP, this investment is quite important as it is of direct interest to our objectives and supports our sustainability action plan. It is actually an essential move in the right direction and one that shouldn’t be paused in any way. As part of this move in the forward direction, there has been some level of commitments towards ensuring that at least 50% of the material that is used for the production of PET bottles comes from recycled plastic by the year 2025. This is part of a holistic strategy focused on creating a more circular packaging economy which is aimed at contributing to the fight against global warming and greenhouse effect.
Loop Industries is a leading technology innovator in sustainable plastic. They are ready to enter into a multi-year supply framework with the Coca-Cola system’s Cross Enterprise Procurement Group (“CEPG”). This deal means that loop industries will be solely charged with the supply 100% recycled and sustainable Loop™ PET plastic (“Loop™ PET”). This is expected to come from Loop’s joint venture facility with Indorama Ventures Limited in the United States. These raw materials are meant to be supplied to authorized Coca-Cola bottlers who are interested and willing to enter a supply agreement with Loop.
On the other hand, Indorama Ventures is a global integrated leader in PET and fibers and a world-class chemicals company that serves the majority of customers in diversified end-use markets.
There is rapid and exciting progress in this project and arrangement by Loop as it continually commercializes it breakthrough depolymerization technology which will help reduce global plastic waste and enable major global brands to meet their sustainability goals. No doubt, there is an increased demand for sustainable packaging solutions. This explains one of the reasons why Loop Industries has emerged with transformational technology that allows no and low-value plastics to be diverted, recovered and recycled endlessly into new, virgin-quality Loop™ PET plastic.