DEG finances PET recycling expansion in India
Loan of USD 16.25 million for Polygenta.
Some eight million tonnes of plastic waste lands in the oceans every year, causing considerable environmental pollution along shores and riverbanks. Single-use PET bottles account for much of the waste. To mitigate this environmental burden and support a sustainable circular economy, DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH – is providing a long-term loan of USD 16.25 million to the Indian recycling company Polygenta Technologies Ltd. (Polygenta), a subsidiary of perPETual Technologies GmbH. The Danish development finance institution IFU is investing the same amount.
Reduction in electricity consumption and CO2
Using a breakthrough chemical recycling process introduced by perPETual Technologies GmbH, Polygenta manufactures rPET chips and sustainable textile filament yarns for the textile industry using post-consumer PET bottles as feedstock.
Its customers include several well-known international global fashion and sportswear brands. Growing awareness of sustainability issues is fuelling demand for products made from recycled materials. The loans from the development finance providers are earmarked for the construction of two new production lines at the site in Nashik, Maharashtra, allowing the company to further increase its recycling capacity and to process more than 200 tonnes of PET plastic waste a day.
Polygenta has been producing yarn from 100% used plastic bottles since 2014. Their licensed technology to produce yarn consumes about 90% less energy and 65% less water compared to conventional production; greenhouse gas emissions are also around a third lower.
Around 400 new jobs to be created
“Through our commitment to Polygenta, we are helping to find solutions to global environmental problems – especially concerning plastic waste in the oceans,” explains Monika Beck, DEG Management Board member. “By expanding production, the company is also creating around 400 new jobs. Our investment therefore has important development impact at several levels.”
“We are delighted to receive the support of DEG to partner on our growth plans. This is an important technology for India which will help to revolutionise the Indian textile market by producing a high quality recycled yarn.” said Chetan Gandhi, CFO of Polygenta.
Global challenges, such as environmental pollution are leading to changes to framework conditions and markets wordwide. Against this backdrop, DEG has focused its business strategy even more on impactful and climate-friendly investments.