Page 43 - Plastics News February 2021

Business news

Eastman Chemical to invest $250 Dow, Lucro to develop PE film

million over two years solutions using PCR plastics in
India
astman Chemical Co.
Eannounced it will invest
$250 million over two years to lobal company Dow and Indian recycling company
build a methanolysis plant at GLucro Plastecycle have partnered to create post-
its Kingsport, Tenn. facility. The consumer recycled (PCR) plastics-based polyethylene
company described the plant, film solutions in India. The new close-the-loop packaging
which will have an annual solution will increase Dow’s plastics circularity portfolio
capacity of over 100,000 metric in the Asia Pacific region while enabling a circular
tons at full build-out, as “one economy in India. As per terms of the memorandum
of the world’s largest plastic- of understanding (MoU) between the companies, Dow
to-plastic molecular recycling will be responsible to provide Lucro with its material
facilities.” Methanolysis is a science and application development expertise. Lucro
process through which scrap PET is heated and treated will develop and produce the film structures. These
with methanol. The process breaks down the plastic into films will be manufactured by processing plastic waste
its component monomers, dimethyl terephthalate (DMT) sourced from several recycled streams with Dow’s
and ethylene glycol (EG), which are purified and used to virgin resins. Dow Packaging & Specialty Plastics Asia
make new plastic. Eastman calls its technology “polyester Pacific commercial vice-president Bambang Candra
renewal technology.” The company expects construction said: “Scrap packaging is one of the country’s highest
of the new plant to start in March 2021 and finish by contributors of plastic waste and we look forward to
the end of 2022. Eastman CEO and Board Chair Mark this collaboration helping to promote the adoption
Costa provided more information about the project, the of sustainable solutions amongst brand owners and
financial calculus, potential customers, and scrap supply manufacturers and contribute to a reduction in plastics
strategies in a recent conference call with investors. entering the environment as waste. “Finding value in
Costa said Eastman was developing engineering plans for flexible waste is key for the circular economy to set
a methanolysis unit for processing post-consumer plastics new standards for the flexible packaging industry and
back in 2010, but the market wasn’t ready for it at the create a viable circular system for flexible plastics.”
time. We’re really excited because the market is very
much ready for it now. Climate, circularity, sustainability
is obviously becoming an incredible priority around the
world,” he said, according to a transcript provided
by Seeking Alpha. “Even with COVID it’s just become
stronger, not less. And so we think we’re in a great
position to be a leader here.” In the case of recycled-
content PET produced by Eastman’s “polyester renewal
technology,” the company doesn’t expect to charge a
significantly higher price, but it will be “sufficient to
give us an attractive return,” Costa said. He noted that
the company has been working over the past year and a
half to secure a wide range of scrap sources. Costa said
that Eastman enjoys a sourcing advantage because it has Impact-focused investment management firm Circulate
both the polyester and carbon renewal technologies. Capital will support the development of the solutions.
Eastman can take in low-value mixed-plastics streams The solutions can be used in collation shrink films.
that would be unusable to other processors and employ a This form of secondary packaging is generally used for
unique separation process developed by the company to bottles, cans and liquid cartons. Dow stated that the
efficiently separate the material into distinct streams for PCR polyethylene film solution should be available in
use in either the polyester or carbon renewal technologies. Indian market later this year.

43 Februar y 2021 Plastics News