The Philippines’ Board of Investments (BOI) has approved and granted pioneer status to the P2.28 billion PETValue Philippines, set to be the country’s first bottle-to-bottle, food-grade recycling facility.
The multi-phased project is a partnership between Coca-Cola Beverages Philippines, Inc. (CCBPI)– the bottling arm of Coca-Cola in the country, and Thailand-based Indorama Ventures, a recognized global leader in packaging solutions and green technology.
PETValue will establish the most advanced and world-class technologies in the Philippines to produce more sustainable packaging innovations and to help improve the collection and recycling rates of polyethylene terephthalate (PET) plastic bottles.
“We are grateful for the Board of Investments’ recognition of PETValue’s innovations, as well as the agency’s guidance and support, which we are certain will prove invaluable to our collective pursuit of sustainability in the Philippines,” said Gareth McGeown, CEO and President of CCBPI.
“Coca-Cola shares the BOI’s commitment to seek investments that yield positive and lasting impact, innovations geared toward greener economies and the well-being of the public, and the continued generation of more livelihood for Filipinos.”
“The pioneer status granted to PETValue is both an honor and an empowerment. As we play our part to lead recycling initiatives in the country, we are looking forward to a future where our facility is part of a much broader system that actively develops sustainable initiatives for the good of all,” said McGeown.
As a pioneer project, PETValue will enjoy a package of tax and fiscal incentives, including maximum of 8 years of income tax holiday incentives, zero duty for its imported capital equipment, among others.
The BOI grants pioneer status to projects involving manufacturing or processing activities that have not been produced in the country on a commercial scale or uses a system of transforming raw materials using new technologies, among other qualifications.
The construction of the PETValue facility is currently ongoing in General Trias, Cavite, and is set to be
completed by Q4 of 2021.
Among the contributors to the growing post-consumer plastic waste problem in the country is the lack of proper waste management infrastructure. As a result, plastics—even those that are 100% recyclable—are leaked into the waterways. With the PETValue facility establishing a total economic system for recycling, a more robust waste value chain will be developed that will give new life to post-consumer or used PET plastic bottles.
Propelling communities towards a circular economy, this next-generation recycling facility will employ the safest and most advanced technologies to recycle bottles made from polyethylene terephthalate (PET), which is the world’s most recyclable and recycled type of plastic, into new food-grade bottle packaging once again. Used PET bottles will undergo an 8-step green technology process that can process 45,000 MT / year or almost 3 billion pieces of plastic bottles, with an output of 32,000 MT / year of recycled PET resin.
Through this facility, Coca-Cola aims to close the loop of its packaging by collecting all types of clear plastic PET bottles, even those manufactured by other companies, and reduce plastic waste and leakage into waterways; generate more jobs for Filipinos and promote improved livelihood options downstream in the waste value chain.
PETValue plays a critical role in advancing Coca-Cola’s World Without Waste goal in the Philippines. World Without Waste is the global commitment of Coca-Cola to collect and recycle the equivalent of every bottle and can it sells by 2030.
McGeown said, “We are fortunate to have as our partner Indorama Ventures, with whom we share the same vision of sustainability and the same resolve to realize those goals. With their globally recognized expertise, the Philippines will be utilizing world-class green technologies for bottle-to-bottle recycling for the first time —indelibly paving the way toward a more sustainable future for the country.”
Yashovardhan Lohia, Chief Recycling Officer of Indorama Ventures, welcomed the BOI’s approval of the recycling facility and its recognition of PETValue’s vision: “Indorama Ventures is honored to be part of a pioneering initiative, and we are grateful to have the support of the Philippines’ Board of Investments, as well as the endorsement of the Philippines’ Department of Science and Technology, for such a significant undertaking. We are confident that our strong partnership with Coca-Cola will ensure that the introduction to the country of our company’s green technologies and innovations will yield groundbreaking gains toward securing collective sustainability goals for the Philippines.”
Indorama Ventures’ footprint spans over 120 manufacturing sites in 33 countries and employs over 24,000 people worldwide. The company has become the largest producer of polyester products since its founding in 1975. Beyond market growth, Indorama Ventures pioneers environmental leadership with over 30+ years of experience in championing the circular economy through green technologies. Most recent expansions of facilities in Poland and France will be recycling 10 billion post-consumer PET plastic bottles from across Europe per year by 2023, a move hailed by the Union of European Beverages Association.