MBOLD designed to boost plastic film recycling

The organizers of a St. Paul, Minnesota-based coalition called MBOLD are calling it a groundbreaking partnership designed to catalyze a regional circular economy for flexible films and packaging materials in the Upper Midwest.

MBOLD members include multinational brands including General Mills, Schwan’s Co., Target, Ecolab, Cargill and Land O’Lakes Inc. Also involved are recycling-related organizations Closed Loop Partners and the Alliance to End Plastic Waste, the University of Minnesota, plastic film manufacturer Charter Next Generation and the Minnesota location of Myplas USA Inc., a subsidiary of South Africa-based film recycling company Myplas.

The initiative has been designed to expand film recycling infrastructure and the supply of recycled resin for use in new products, reducing greenhouse gas emissions and curtailing waste, the coalition says.

Following investments from MBOLD members and other stakeholders, Myplas USA will establish a flexible film recycling and reprocessing plant in Minnesota. Scheduled to begin operations in the spring of 2023, the 170,000-square-foot mechanical recycling plant will be designed to recycle nearly 45,000 tons of low-density polyethylene (LDPE) and high-density polyethylene (HDPE) packaging and film annually.

“We are excited to collaborate across industries to advance recycling innovation for flexible films used in product packaging and more,” says Jeff Harmening, chairman and CEO of General Mills and MBOLD co-chair. “This initiative reflects General Mills’ commitment to regenerating our planet and shows what’s possible when we work together to find creative solutions to shared challenges.”

MBOLD says the United States consumes some 6 million to 7.5 million tons of flexible packaging and films annually, in the form of food packaging, shopping bags, shrink wrap, pallet wrap, e-commerce mailers, lawn and garden bags and hay bale wrap, among many other products. However, only an estimated five percent of flexible films used in the U.S. are recycled each year, with the rest being landfilled, incinerated or even released into the environment, the group says.

“We are building a regional ecosystem to support circular approaches for flexible film,” says JoAnne Berkenkamp, managing director of MBOLD. “By working together, we are catalyzing a new circular economy that will expand access to film recycling in the Upper Midwest, increase the supply of recycled resin for use in new film products and cut emissions.”

The initiative includes a combined $9.2 million equity investment in Myplas USA by lead investors General Mills, Schwan’s and Wisconsin-based film manufacturer Charter Next Generation and supporting investors Target and Ecolab. Myplas’ new film recycling plant will be located in Rogers, Minnesota, northwest of Minneapolis, and will employ about 300 people.

Schwan CEO Dimitrios Smyrnios says, “Reducing the environmental impact of our packaging is a core commitment for Schwan’s. That’s why we’re part of this joint equity investment in new recycling infrastructure. By returning flexible film to new uses, we can reduce waste and curtail dependence on virgin plastic. It’s good for the environment and our business.”

Compared with virgin plastics, the use of recycled polyethylene (PE) resins offer significant life cycle benefits, including a 65 percent reduction in total energy used, a 59 percent reduction in water consumption and a 71 percent reduction in global warming potential, says MBOLD, citing an Association of Plastic Recyclers study.

“Myplas has a deep passion for plastics recycling, and we’re proud to establish our first U.S. plant and our U.S. headquarters in Minnesota,” says Andrew Pieterse, Myplas USA CEO. “Our partners’ commitment, investment and innovative thinking, paired with Myplas’ technical expertise, will be transformative for the entire region. We can’t wait to get started.”

To help create demand for recycled PE resin, Charter Next Generation will purchase recycled resin from Myplas for use in food, industrial and health care film products. MBOLD members Cargill, General Mills, Schwan’s., Land O’Lakes and the University of Minnesota will evaluate potential product applications using recycled resin with Charter Next Generation. Land O’Lakes, Cargill, Schwan’s Company and the University of Minnesota also will explore opportunities to direct film waste to Myplas USA for recycling once the plant is operational.

Charter Next Generation CEO Kathy Bolhous says, “This collaboration with MBOLD and Myplas USA is forging a new future for packaging innovation. It will broaden our sustainable film portfolio, create an urgently needed solution for the region and help meet the growing demand for recycled content in packaging.”

The Alliance to End Plastic Waste and Closed Loop Partners are each providing multimillion dollar debt financing to Myplas USA to support development of its new Minnesota recycling facility. The Minnesota Department of Employment and Economic Development also is supporting Myplas USA through $1 million from the Minnesota Investment Fund and $450,000 from the Minnesota Job Creation Fund.

“This is about protecting our environment and driving innovation,” says Steve Grove. Minnesota’s employment and economic development commissioner. “It’s about bringing a new industry to Minnesota and showing the world how the private and public sectors can come together to solve problems. The state of Minnesota is proud to support this effort, and we’re grateful to the companies that made it happen.”