Closed Loop Partners Invests $5 Million In Myplas to Expand Polyethylene Recycling

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June 07, 2022

Investment Will Help Catalyze a Circular Economy for PE Film and Food-Grade HDPE Packaging in the Upper Midwest

NEW YORK, NY (June 7, 2022) Closed Loop Partners announced Tuesday that its Closed Loop Infrastructure Fund and Closed Loop Circular Plastics Fund committed $5 million to help establish a state-of-the-art flexible film recycling plant in Minnesota. The project, led by the MBOLD coalition, brings the business community together with research institutions 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’ funds represent investors including many of the world’s largest retailers, consumer goods companies, corporate foundations and material science companies. The investment in this project, launched by a coalition of Minnesota companies with MBOLD, aims to grow recycling infrastructure and increase the supply of recycled materials available for use. The facility will be the first in the United States for South African recycler Myplas. Slated to begin operations in spring 2023, this new 170,000-square-foot mechanical recycling plant will produce recycled LDPE pellets and food-grade HDPE pellets. It aims to recycle nearly 90 million pounds of material annually at full capacity, diverting these valuable materials from landfill.

“There is growing demand for recycled polyethylene across the value chain, yet only 11% of polyethylene film is recovered in North America today,” said Ron Gonen, Founder & 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. It’s projects like these that contribute to solutions to meet the demand for recycled materials, reduce greenhouse gas emissions, divert valuable materials from landfill and eliminate natural extraction.”

“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.”

Myplas’ new $24 million plant is under construction in Rogers, Minn., northwest of Minneapolis, and at full capacity will employ about 300 people. Learn more about the project’s partners here.

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity and catalytic capital, as well as an innovation center focused on building the circular economy. Investments align capitalism with positive social and environmental impact by reducing waste and greenhouse gas emissions via materials innovation, advanced recycling technologies, supply chain optimization and landfill diversion. Learn more at closedlooppartners.com

About the Closed Loop Infrastructure Fund at Closed Loop Partners

Established in 2014 and funded by some of the world’s largest retailers, corporate foundations, technology and consumer goods companies. The Closed Loop Infrastructure Fund provides below-market rate loans to finance projects that build out circular economy infrastructure in the United States. Investors include 3M, Amazon, Coca-Cola, Colgate-Palmolive, Johnson & Johnson, BlueTriton, Keurig Dr Pepper, Procter & Gamble, PepsiCo, Danone North America, Danone Waters, Starbucks, Unilever and Walmart Foundation. Learn more about the Fund’s investment criteria and apply for funding here.

 About the Closed Loop Circular Plastics Fund at Closed Loop Partners

The Closed Loop Circular Plastics Fund provides catalytic financing to build circular economy infrastructure and improve the recovery of polypropylene and polyethylene plastic in the U.S. & Canada, returning plastics to more sustainable manufacturing supply chains for use as feedstock for future products and packaging. Investors include Dow, LyondellBasell, NOVA Chemicals, Sealed Air and SK Geo Centric Co. Ltd. Learn more about the Fund’s investment criteria and apply for funding here