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Florida Co. Partners To Create First Sustainable PP Resin
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Shares of PureCycle Technologies Inc. traded 8% higher Friday after the company reported that together with Milliken & Co. of Belgium it has created a new concentrate using recycled polypropylene (PP) resin that advances circularity and reduces GHG emissions by 35%. Thursday, PureCycle announced it formed a JV with SKGC of South Korea to build the first PP recycling plant in Asia.

Recycled polypropylene (PP) producer PureCycle Technologies Inc. (PCT:NASDAQ) and Milliken & Company, a Belgium-based manufacturer with expertise in polymer additive and colorant technology, Friday announced that working together "they have created the first fully sustainable concentrate for PP on the market."

The firms advised that the concentrate was engineered using PureCycle's recycled PP resin materials which permits the use of 100% recycled content and advances circularity. The companies mentioned that this newly formulated sustainable PP concentrate has "a carbon footprint (GHG) approximately 35% lower than that of virgin PP."

The report indicated that the newly designed concentrate product incorporates Milliken's Millad® NX® 8000 ECO clarifier, which allows manufacturers using this product to display certified energy savings and the highly desirable UL Environmental Claim Validation label on any injection-molded parts manufactured.

PureCycle's CEO Dustin Olson, and Milliken's Global VP of Plastics Additives Wim Van de Velde, discussed the history of the collaborative partnership during a press panel at the K 2022 plastics and rubber industry fair in Düsseldorf, Germany, and noted that today's announcement of the first odorless concentrate for PP based on a recycled resin carrier grew directly out of those efforts.

The 50-50 venture is expected to increase SKGC's presence in Asia and expand its global market reach. The agreement stipulates further that SKGC will receive certain first rights to participate in any new projects in Asia.

PureCycle licensed its patented recycling process from The Procter & Gamble Co. The technology and processes allow for the separation of color, contaminants, and odor from PP waste feedstock which can then be transformed into ultra-pure resin.

Milliken has vast experience in specialty chemicals and plastics, and in addition to providing an exclusive supply relationship, it will also help in addressing the plastics' end-of-life challenge.

CEO Olson stated, "Milliken has been a steadfast partner for PureCycle since the very early days . . . For a startup company like ours with groundbreaking technology, we needed their help to set our technical foundation. Their expertise and commitment to understand, grow and develop our product is a differential factor in this partnership."

Milliken's Van de Velde added, "Sustainability is a key pillar and our focus as an organization . . . With our technical expertise, we will continue to innovate and bring in new technologies and sustainable solutions to enable our customers to grow. We know that continuing to work with PureCycle and supporting their solution can help the industry move towards where they need to be in the next 10 to 15 years."

Milliken & Co. is a global chemical research and manufacturing firm based in Ghent, Belgium. The company's products use a broad range of chemicals and products used in agriculture, automotive, construction, paint and coatings, textile, flooring, healthcare, and other industries.

Friday's announcement comes one day after PureCycle Technologies announced that it formed a 50-50 joint venture with SK geo centric Co., Ltd. (SKGC:KRX) to build and operate what it claimed to be Asia's first Polypropylene (PP) recycling plant.

The two firms plan to construct a plastic recycling plant in Ulsan, South Korea, that "will turn contaminated plastic feedstock into ultra-pure recycled (UPR) resin that can be infinitely reused and recycled." When completed in Q2/25, the facility will be capable of processing up to 60,000 tons of material per year.

SKGC will be responsible for market development, strategy, and sales, and PureCycle will contribute its patented recycling technology and technical assistance. PureCycle's technology offers unique capabilities of removing colors, contaminants, and odors from PP waste feedstock before turning it into Ultra-Pure Recycled (UPR) resin which can be perpetually recycled and reused.

"This announcement marks a critical milestone in the fight to tackle the plastic pollution problem on a global scale," Olson added.

The 50-50 venture is expected to increase SKGC's presence in Asia and expand its global market reach. The agreement stipulates further that SKGC will receive certain first rights to participate in any new projects in Asia.

SKGC's CEO Na Kyung-soo remarked, "Asia's first commercial production of ultra-pure recycled PP is in sight. This will take SK geocentric to the next level, and we will continue to contribute to making Korea play a key role in the rapidly growing global recycling industry."

PureCycle CEO Olson stated, "We are thrilled to be working with SK geocentric on this exciting project. This new polypropylene purification plant – the first of its kind in Asia — will not only recycle plastic waste in South Korea but also supply a new market with premium recycled plastic that can be utilized to develop a diverse array of consumer products."

"This announcement marks a critical milestone in the fight to tackle the plastic pollution problem on a global scale," Olson added.

PP is used ubiquitously in plastics and is found in many household and commercial products such as appliances, food packaging, kid's toys, and interior automotive materials. Because much of the odors and contaminants from these types of plastics cannot be fully removed using conventional recycling methods, a substantial portion of these scrap materials end up being burned or end up in landfills. The new venture aims to address and put an end to this problem in Asia and elsewhere.

SKGC is a diversified supplier of petrochemical chemicals headquartered in Seoul, South Korea. The firm initially started its operations as a supplier of products used in automotive and packaging products but is now focused on becoming a technology-based global chemical company. The firm's products include core petrochemical materials, solvents, polyethylene, high-performance products, synthetic rubber, and high-performance packaging and automotive materials.

SKGC hopes to be at the forefront of a plastics-based circular economy, and by collaborating with partners and stakeholders, it aims to achieve its vision of being "Green for Better Life." The company endeavors to develop and manufacture eco-friendly products that can be repeatedly and continuously recycled.

PureCycle Technologies Inc. is a producer of recycled polypropylene (PP) based in Orlando, Fla. The company is the parent company of PureCycle Technologies LLC., which has secured the global licensing rights for what it claims to be "the only patented solvent-driven purification recycling technology, developed by The Procter & Gamble Company (P&G), that is designed to transform polypropylene plastic waste (designated as No. 5 plastic) into a continuously renewable resource." The company advised that the patented technology and process can "remove color, odor, and other impurities from No. 5 plastic waste resulting in an ultra-pure recycled (UPR) plastic that can be recycled and reused over and over again."

PureCycle has a market cap of around $1.27 billion, with approximately 163.51 million shares outstanding and a short interest of about 11.7%. PCT shares opened 4% higher Friday at $8.11 (+$0.32, +4.11%) over Thursday's $7.79 closing price. The stock traded Friday between $8.02 and $8.50 per share and closed for trading at $8.40 (+$0.61, +7.83%).

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