Closed Loop Partners invests $5M in Myplas to expand plastic recycling

Closed Loop Partners, New York, has announced that its Closed Loop Infrastructure Fund and Closed Loop Circular Plastics Fund committed $5 million to help establish a flexible film recycling plant in Minnesota for South African-based recycler Myplas.

The project is led by the MBold coalition, a group of companies working to solve agricultural issues in Minnesota. It will work to develop a regional circular economy for flexible films and other plastic packaging materials in the Upper Midwest region of the U.S. Closed Loop Partners says the investment in this project aims to grow recycling infrastructure and increase the supply of recycled materials available for use.

Myplas’ new $24 million plant is under construction in Rogers, Minnesota, northwest of Minneapolis, and at full capacity will employ about 300 people.

“This is a very important step to advance recycling capability in the U.S. and particularly in the Upper Midwest,” said Andrew Pieterse, CEO of Myplas USA. “We’re very excited and proud to establish our first plant in Minnesota with the State itself and many important global brands headquartered here, investing in and supporting this initiative. The funds and support provided by Closed Loop Partners will be critical to ensure our collective success.”

The facility will be the first in the United States for South African recycler Myplas. Slated to begin operations in spring 2023, the 170,000-square-foot mechanical recycling plant will produce recycled low-density polyethylene pellets and food-grade high-density polyethylene pellets. It aims to recycle nearly 90 million pounds of material annually at full capacity, diverting these valuable materials from landfills.

“There is a growing demand for recycled polyethylene across the value chain, yet only 11 percent of polyethylene film is recovered in North America today,” says Ron Gonen, founder and CEO of Closed Loop Partners. “This new facility is an important piece of circular economy infrastructure needed to develop local market capacity to manage hard-to-recycle plastics.”