Coca-Cola Amatil Indonesia has signed a heads of agreement with its long-term packaging partner Dynapack Asia to build a bottle-to-bottle grade PET recycling facility in Indonesia.
The next step in the process is for Amatil and Dynapack are to work together through a proof-of-concept phase, considering the potential plant’s economic feasibility, size, scale, and location. It will also consider potential integration into each company’s value chains.
Coca-Cola Amatil Indonesia president and director Kadir Gunduz said the two companies had established a joint project team to leverage each company’s expertise in parts of the production and recycling process.
“This joint venture represents a real environmental step-change in our move towards a more sustainable approach to plastic and a circular economy by bringing low-quality PET waste back to virgin-quality, food-grade PET, which also echoes The Coca-Cola Company’s ‘World Without Waste’ vision,” Gunduz said.
“It is a significant step towards Amatil becoming self-sustaining in the plastic materials we use, ensuring a closed-loop for plastic beverage packaging in Indonesia as a whole.”
Gunduz also said the use of recycled plastic could reduce the amount of new plastic resin the company uses by up to 25,000 tonnes each year in 2022, aligning with the commitment as part of the steering board at NPAP (National Plastic Action Partnership) to supports Indonesia’s National Action Plan in achieving a 70 per cent reduction in the nation’s marine plastic debris by 2025.
As a major rigid plastic and packaging company in South East Asia and China, Dynapack Asia intends to collaborate with its customers to increase the use of recycled materials and products, strengthening the region’s recycling ecosystem and achieving a circular economy in the region.
Dynapack Asia president director Tirtadjaja Hambali said, “To support our environmental responsibility, we have signed a global commitment with the Ellen McArthur Foundation to use at least 25 per cent of recycled resin material in our packaging products by 2025. This recycled PET resin facility is another step closer to achieving our commitment.”
Following the proof of concept phase, and formalisation of agreements, the parties will outline their intended programme.
Also, this week, CCA said in a recent trading update it continues to feel “significant volatility” across all markets as a result of the COVID-19 pandemic, with the group volume of beverages sold down by 33 per cent in April. But as Covid-19 lockdowns ease, the company is looking to a more robust Q4.