World Bank help offered for Brazilian recycling plant

Unnafibras Textil already recycles more than one billion bottles a year into raw materials, but the quality of the new resin would be good enough to support a soft-drinks bottling plant in the region, said the IFC.

It plans to provide $13m equity financing, to be augmented by private lenders ($28m form DEG, Stratus, Proparco and Grupo Ecos) and cash. The company can already produce 3,600 tons of PET flakes and 3,000 tons of PET-based fibres each month, although it has not revealed the new bottle-to-bottle plant’s capacity.

The money will also create a new high quality plastic fibre line. ABIPET, the Brazilian PET industry association, says 55% of all used PET bottles in the country are recycled.

The project still needs formal approval from the IFC board, but a memorandum recommending the financing said: “By converting waste drinking bottles into usable, valuable manufacturing raw materials, the project will support improved and sustainable waste management.

“The project will indirectly support Unna's supply-chain that is made of small waste collection cooperatives that provide income to low-income families.”

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