Republic Services Expands Presence in Western Colorado with 2 Acquisitions

WMHouston, announced that it has agreed to acquire a majority stake in the Houston-based company Avangard Innovative An American company, which will operate as Natura PCR, an independent company that is expected to expand and increase its recycling capacity to produce approximately 400 million pounds per year of post-consumer resin (PCR) in five years.

The transaction is expected to close in late 2022, subject to the satisfaction of customary closing conditions, including regulatory approvals.

Through NaturaPCRWM plans to provide new recycling capabilities to its customers and provide circular solutions for commercially used clear plastic films and packaging, such as plastic stretch wrap for pallets, furniture wraps, plastic bags, etc. groceries and potentially shrink wrap around food and beverage containers.

“WM’s majority stake in Natura PCR positions us to grow and scale rapidly in the emerging PCR space,” said Jim Fish, President and CEO of WM. “WM’s core material sourcing capabilities, along with the lead and insights provided by Avangard’s US operations, will help Natura PCR quickly deliver circular options to WM customers as an important part of our strategy. continued growth in recycling. Today there is so much untapped potential to reuse films, which impacts many of our commercial customers. We can help our customers close the loop and bring more recycled materials to store shelves. »

Leading company in the field of materials science, Dow, Midland, Michigan, works with WM to help increase plastics recycling rates and create sustainable solutions in packaging, infrastructure and consumer applications. Dow has also been working with Avangard Innovative since early 2020, purchasing the company’s PCR pellets to produce REVOLOOP, Dow’s product line with PCR content.

“We’ve worked with both companies to increase the use of recycled plastic in Dow’s products, and Natura PCR brings together capabilities that will unlock more options for hard-to-recycle plastics for industry,” says Nestor de Mattos. , North America sales. vice president of packaging and specialty plastics at Dow. “Natura PCR is further expanding its large-scale waste-to-market solutions in North America and advancing our goal to help divert plastics from landfills to circular solutions. »

Natura PCR will focus on the mechanical recycling of films and flexible plastics – some of the most complex plastics in today’s recycling stream – and convert these materials into PCR that can be used to make new products replacing virgin materials. These flows represent almost a quarter of current plastic production, but only around 5% is recycled today.

Demand for PCR is expected to increase in response to commitments by consumer packaged goods companies to use recycled content and pressure from consumers and regulators to increase PCR content in packaging materials that companies manufacture. WM has a proven track record of collecting materials from commercial streams for the raw material needed to produce PCR content and hopes its material sourcing expertise will allow it to increase the supply of PCR pellets that Natura PCR can produce for use in new products.

“This transaction helps the company rapidly scale operations, maximize raw materials, and meet the continued increase in demand for environmental additives, such as recycled plastic resin,” said Rick Perez, CEO of ‘Avangard Innovative. “After 30 years in the recycling industry, WM’s significant involvement, coupled with the strong relationship with Dow and other customers, will enable Natura PCR to offer the most innovative end-to-end circular economy solution. of the market.”

Natura PCR plans to expand its recycling capabilities at Avangard’s existing facility in Waller, Texas, and build a new facility in the Midwest. Natura PCR will be primarily owned and controlled by WM. Avangard and affiliated entities will hold a collective minority stake in Natura PCR. WM expects to receive returns on investment comparable to its previously announced automation investments in single-stream recycling.

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