December 6, 2024 – Austrian Packaging Giant Alpla Takes Major Step in South Africa with PET Recycling Plant Launch
In a significant move for the packaging industry, Austrian manufacturer Alpla has opened its first PET recycling plant in South Africa, located in Ballito, KwaZulu-Natal. The factory, spanning 90,000 square meters and with a total investment of €60 million, was officially inaugurated at the end of October after approximately 18 months of meticulous construction. The recycling plant is expected to be fully operational by early 2025.
The new facility is initially set to produce 35,000 tonnes of rPET flakes, with 16,000 tonnes further processed into rPET granules. These recycled materials will be transported to Alpla’s production plant near Johannesburg in Lanseria, which commenced operations in October 2022, establishing a strong footprint for Alpla in the South African market.
“South Africa is a strategically important market for us, and we look forward to achieving long-term growth here,” said Alpla CEO Philipp Lehner during the opening ceremony. “We are committed to working with our customers and partners to provide safe, economical, and sustainable packaging solutions that enhance people’s lives. Our investments in Ballito and Lanseria have laid a solid foundation for future success.”
According to industry insiders from AsiaMB, the recycled plastics produced at the new factory will enable Alpla’s customers to meet the recycled content requirements of South Africa’s Extended Producer Responsibility (EPR) regulations. Since 2021, the EPR policy has mandated that PET beverage bottles must contain at least 10% recycled material, with this proportion increasing to 20% by 2026. This policy has placed greater demands on the plastic recycling industry, and Alpla’s investment is a timely response to this trend.
However, the South African plastic recycling industry has faced significant challenges in recent years. Oliver Bonstein, General Manager of the South African Plastics Recycling Organization (SAPRO), explained that compared to other regions, South Africa is experiencing delayed crisis effects. While some recyclers have successfully overcome initial difficulties since 2022, many others have been forced to close due to a lack of continuous investment in new machinery or technology. In this context, Alpla’s investment has provided a much-needed boost to the South African plastic recycling industry.
Notably, Alpla has an extensive network of PET mechanical recycling facilities globally, including plants in Germany, Mexico, Poland, Spain, Romania, and Thailand. The new investment in South Africa not only further expands Alpla’s global footprint but also demonstrates its unwavering commitment to promoting sustainability.