HPC Industries LLC and Macquarie Group’s Commodities and Global Markets group have formed a joint venture to produce recycled polyethylene terephthalate (rPET).
Operating under the name Circularix, the plan is to build and operate five recycling facilities across the U.S. with a total annual production capacity of more than 275 million pounds of rPET resin.
The first facility, located in Hatfield, Pennsylvania, is expected to be operational by December 2022.
Leon Farahnik is chairman and CEO of Circularix. Alex Delnik, former CEO and founder of Verdeco Recycling, will serve as president and chief operating officer.
In addition to its investment as a partner in the joint venture, Macquarie is assisting Circularix with project debt, equipment finance, FX hedging and other risk management solutions to support its future growth.
“Consumer brands are struggling to meet their sustainability goals as current rPET supply is unable to scale as needed,” Farahnik said. “Our move into rPET production is the beginning of a major and much-needed capacity expansion in the United States, and we are excited to continue playing an important role in the plastics recycling industry by uniting our experience with Macquarie’s.”
Macquarie provides risk management, market access and capital and financing solutions to the petrochemicals industry and has played a role in environmental product markets, sustainable infrastructure and the waste sector around the world for more than 15 years. It formed its Sustainable Waste Solutions team in 2020 to provide finance and growth capital solutions to clients in the waste sector, with a focus on helping facilitate the transition to a circular economy.
“We are delighted to support our clients in delivering the practical infrastructure needed to expand production capacity for post-consumer recycled materials,” said Ben Glover, executive director in Macquarie’s Specialized and Asset Finance division. “Ventures such as Circularix are a key part of the supply chain that will drive more post-consumer material back into higher value recycled packaging markets.”