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

A Closed Loop Partners Managed Investment Fund Leads a Consortium of Investors in Acquiring Sims Municipal Recycling

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March 02, 2022

A Closed Loop Partners Managed Investment Fund Leads a Consortium of Investors in Acquiring Sims Municipal Recycling, One of the Largest Privately Held Recycling Companies in the World

Sims Municipal Recycling manages several municipal recycling programs including the largest municipal recycling contract in North America, New York City’s recycling contract

NEW YORKMarch 2, 2022 /PRNewswire/ — The Closed Loop Leadership Fund, L.P., a private investment fund managed by Closed Loop Partners (CLP), has led a consortium of investors, including the Partnership Fund for New York City, in acquiring a majority stake in Sims Municipal Recycling (SMR). The acquisition is expected to further modernize circular economy infrastructure and service in the New York-New Jersey Metro region and Florida, as well as expand SMR’s best-in-class operations into new markets. SMR currently operates four recycling facilities across the New YorkNew Jersey metro region and Florida, including its Brooklyn materials recovery facility (MRF), which is the largest dual stream recycling facility in North America. SMR also manages the long-term New York City residential recycling contract, which is the largest municipal recycling contract in North America. The investment in SMR is expected to accelerate the recovery of valuable commodities, including plastics, paper, metal and glass, diverting them from landfills and returning them to manufacturing supply chains. In the coming years, SMR’s expansion is expected to create additional local jobs in the recycling and manufacturing sectors.

SMR’s board will become one of the first majority female-led boards in the industry, with Jessica Long, Managing Director at Closed Loop Partners, as Chairperson of the Board. Long says, “Closed Loop Partners’ ecosystem of investors––including strategic corporate partners like Nestlé, PepsiCo Beverages North America, Microsoft and Unilever, pension funds, family offices and foundations––are all interested in developing sustainable business models and markets for recycled content, keeping valuable materials out of landfill. This investment, coupled with the existing portfolio of Closed Loop Partners’ managed investment funds, will enable SMR to expand its services, accelerating the development of circular economy infrastructure in the United States.”

“SMR will continue to provide important recycling services to New Yorkers and communities across the NY-NJ metro region and Florida. We now have an exciting opportunity to combine our strong operating history with Closed Loop Partners’ extensive resources to strengthen circularity for the post-consumer municipal waste stream,” says Tom Outerbridge, President of SMR. “Together, we can accelerate the modernization of recycling across the United States to close the loop on valuable materials and build a truly circular economy.”

SMR produces hundreds of thousands of tons of recycled metals, plastics, paper and glass for sale to mills, smelters, refiners, re-claimers and secondary material processors. Since winning the contract to service the City of New York, SMR has grown to handle more than 600,000 tons of municipal curbside material annually that is collected from more than 10 million people.

“Every year, New Yorkers put hundreds of thousands of tons of valuable materials like plastic, glass, metal and paper into their recycling bins, and Sims Municipal Recycling plays a critical role in processing these to make sure they re-enter manufacturing supply chains, rather than turn into waste,” says Bridget Anderson, Deputy Commissioner, Recycling and Sustainability at NYC Department of Sanitation (DSNY).

In cities across North America, including New York, zero-waste goals are becoming a top priority with the growing urgency of climate risks and increasing landfill costs. According to the Circularity Gap Reporting Initiative, 70% of all global greenhouse gas (GHG) emissions are related to material handling and use, making circular economy infrastructure a critical part of the solution to our climate crisis. Expanding access to recycling services and enabling local circular economy manufacturing can help cities and businesses avoid the cost of landfilling products and packaging, while eliminating the GHG emissions associated with manufacturing using virgin materials, and helping to create thousands of local jobs and more resilient communities.

This investment is made possible by a group of investors, including investment funds managed by Closed Loop Partners, such as the Closed Loop Leadership Fund and the Closed Loop Circular Plastics Fund, as well as the Partnership Fund for New York City, among others. The Closed Loop Leadership Fund, Closed Loop Partners’ managed buyout fund, includes investors Microsoft Climate Innovation Fund, Nestlé, PepsiCo Beverages North America and Unilever, alongside family offices, pension funds and foundations. It also marks the first investment from the Closed Loop Circular Plastics Fund, Closed Loop Partners’ catalytic flexible financing fund that launched in 2021, and includes investors Dow, LyondellBasell, NOVA Chemicals, Sealed Air and SK Geo Centric Co., Ltd. Closed Loop Partners’ Circular Plastics Fund finances technologies, companies and infrastructure projects that increase the quality and quantity of recycled polyethylene and polypropylene. Together, these companies each have ambitious commitments to use recycled materials in their manufacturing supply chains, yet the current supply of recycled plastics meets only six percent of demand for the most commonly used plastics in the U.S. and Canada.

“Sims Municipal Recycling will play a critical role in powering an inclusive circular economy in New York City by reducing waste and supporting a sustainable supply chain for new products,” said Maria Gotsch, President and CEO of the Partnership Fund for New York City. “We are excited to support this acquisition which will help ensure that SMR has the resources and next-generation technology to expand its regional footprint at a time when New York is rethinking its recycling systems and transitioning to a greener economy.”

“Nestlé is committed to helping ensure that after our consumers enjoy the products we create, there is infrastructure in place that allows them to recycle and help keep those plastics out of landfills,” said Chastity McLeod, Director of Technical Packaging at Nestlé USA. “This acquisition is an important step towards making that type of true circular system a reality. We are proud of our investment and partnership with Closed Loop Partners and look forward to continued collaboration as we work together to advance our shared vision for a waste-free future.”

“The recycling landscape in America continues to be challenging, and as companies – including PepsiCo – set ambitious goals to use more recycled content in their packaging, there is more need than ever for partnerships and action to increase access to recycled material,” said Jason Blake, Chief Sustainability Officer and SVP at PepsiCo Beverages North America. “Through our partnership with Closed Loop Partners we are able to advance the necessary work that is being done to transform the recycling system and get access to more high-quality recycled material that will help us to make progress towards our PepsiCo Positive goals and transformation.”

“Investing in recycling infrastructure is central to Unilever’s goal to collect and process more plastic packaging than we sell by 2025,” said Niki King, Head of Sustainability for Unilever North America. “Sims Municipal Recycling already has one of the largest recycling facilities in North America, and we’re happy to see our investment going toward growing this company to unlock great capacity to keep materials in the circular economy.”

“When Dow joined the Circular Plastics Fund as an initial investor, we envisioned projects like the Sims Municipal Recycling acquisition,” said Diego Donoso, President of Dow Packaging & Specialty Plastics. “I know this is just the first of several significant projects that will grow and improve recycling infrastructure in the U.S. as a result of the Fund.”

“Removing plastic waste from the environment is an essential contribution to society and future generations. LyondellBasell is proud to be a founding partner of Closed Loop Partners’ Circular Plastics Fund and is very pleased the fund’s first investment is Sims Municipal Recycling,” said Ken Lane, Executive Vice President, Global Olefins and Polyolefins at LyondellBasell. “Through this investment, we are moving another step closer toward achieving a circular economy.”

“NOVA Chemicals is excited to participate in the Closed Loop Circular Plastics Fund’s first investment in Sims Municipal Recycling. Together, we are committed to enabling the circular economy by finding ways to reuse plastics again and again,” said Luis Sierra, President and CEO of NOVA Chemicals. “The Closed Loop Circular Plastics Fund plays a powerful role in catalyzing capital, attracting more investors, and aligning companies across the plastics value chain so that together we can create a circular, waste-free system for plastics.”

“At Sealed Air, we understand the circularity of packaging is critical for our sustainability purpose, and we are excited about the potential of this investment in partnership with Closed Loop Partners and its managed funds,” said Sergio Pupkin, Chief Growth & Strategy Officer at Sealed Air Corporation. “It’s critical that we grow recycling infrastructure so that we can recover more materials and loop them back into packaging supply chains.”

Investing in the growth and strengthening of recycling infrastructure across the United States will help recover the value of products and packaging, returning materials to manufacturing supply chains and enabling packaging circularity. To learn more about this work, visit www.closedlooppartners.com.

About Closed Loop Partners
Closed Loop Partners is a leading circular economy-focused investment firm and innovation center. The New York-based investment firm manages venture capital, growth equity, private equity and project-based finance funds. The firm’s business verticals build upon one another, bridging gaps and fostering synergies to scale the circular economy. Learn more here.

About the Closed Loop Leadership Fund at Closed Loop Partners
The Closed Loop Leadership Fund is Closed Loop Partners’ private equity fund, focused on investing in best-in-class circular business models that are fundamental to keeping plastics and packaging, food and organics, electronics and textiles out of landfills and within a circular system.

To learn about the Closed Loop Leadership Fund, visit Closed Loop Partners’ website.

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. Learn more about the Fund’s investment criteria and apply for funding here.

The Fund’s goal of optimizing recovery infrastructure is one part of Closed Loop Partners’ broader initiative of Advancing Circular Systems for Plastics. This initiative prioritizes scaling reuse and refill models and reducing material usage in design, while bolstering the recovery infrastructure to address plastics waste.

To learn about the Closed Loop Circular Plastics Fund, visit Closed Loop Partners’ website.

About Sims Municipal Recycling
Sims Municipal Recycling (SMR), a leader in the municipal recycling industry, was established in 2003 as a wholly-owned division of Sims Limited, a global leader in recycling and sustainability. Since that time, SMR quickly became the cornerstone of the New York City curbside recycling program. Through its long-term contract with the New York City Department of Sanitation (DSNY), SMR processes and markets 100% of the metal, glass and plastic, and 50% of the paper, collected by DSNY from all New Yorkers. SMR serves New York City and surrounding New Jersey municipalities through its facilities in the BronxBrooklynQueens, and Jersey City, NJ. SMR manages the curbside recyclables of Palm Beach County, FL, through a long-term operating agreement with the Solid Waste Authority of Palm Beach County, and has been contracted to provide similar services to Lee County, FL. Sims Limited remains a minority stakeholder in SMR, and you can read more about the company’s sustainability goals at www.simsltd.com. Visit www.simsmunicipal.com to learn more about SMR and its commitment to sustainability.

About The Partnership Fund for New York
The Partnership Fund for New York City is the investment arm of the Partnership for New York CityNew York’s leading business organization. Our mission is to mobilize our investors’ resources—their money, time and influence—to create jobs, spur new business creation and to expand opportunities for all of the city’s residents and neighborhoods. We invest in innovative nonprofit and for-profit companies to ensure a promising future for New York City. Our investment focus is to make New York City stronger and more inclusive. We prioritize initiatives that create jobs and support social entrepreneurship, particularly in disadvantaged neighborhoods. We facilitate the growth of emerging industries so that New York City is at the forefront of innovation, remains a hub for exceptional talent, and is positioned for the future.

Media Contact:
Georgia Sherwin
[email protected]

SOURCE Closed Loop Partners

Sealed Air Invests $5 Million in Closed Loop Partners’ Circular Plastics Fund to Scale Plastics Recycling

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August 10, 2021

The catalytic Fund aims to fill capital gaps and attract additional investment toward circular solutions that combat plastic waste in the United States and Canada

Aug 10, 2021 – New York – Sealed Air (NYSE: SEE), a leading packaging manufacturer, announced a $5 million investment in the Closed Loop Circular Plastics Fund to advance the recovery and recycling of plastics in the U.S. and Canada. This announcement follows an initial investment totaling $25 million from Dow, LyondellBasell and NOVA Chemicals, followed by a $5 million commitment by SK Global Chemical into the Fund.

SEE’s investment brings the Fund closer to its goal of deploying $100 million to advance scalable recycling technologies, equipment upgrades and infrastructure solutions. The Fund’s catalytic strategy fills investment gaps to spur recycling markets, attracting additional corporate investors and financial institutions and accelerating capital inflows beyond the Fund’s own commitments. At scale, the Fund’s investments aim to recycle more than 500 million pounds of plastics over the Fund’s lifespan.

“SEE’s investment in the Closed Loop Circular Plastics Fund demonstrates their commitment to be a part of the solution to plastic waste, marking a critical step in building a waste-free future for the plastics and packaging industry. Their scale and deep expertise in the space allow us to extend our reach even further and encourage other companies to invest more capital to scale critical sustainable solutions,” says Ron Gonen, Founder & CEO of Closed Loop Partners. “Current supplies of recycled plastics meet only 6% of demand for the most commonly used plastics in the U.S. and Canada. By investing in recycling infrastructure and innovation, we can ensure plastics are incorporated back into manufacturing supply chains after use, instead of going to landfills or the natural environment.”

As a global packaging, technology and solutions company with multiple brands and extensive reach, SEE’s investment in the Closed Loop Circular Plastics Fund demonstrates leadership in shaping a future that is more sustainable for the plastics and packaging industry. This investment is part of Sealed Air’s SEE Ventures initiative that invests in disruptive technologies and new business models. SEE’s investment in this fund builds on the company’s current sustainability and plastics pledge to design or advance packaging solutions to be 100% recyclable or reusable by 2025.

“We are driving the packaging industry to a future that is more sustainable, where plastics are recovered and reused in a scalable way,” said Ted Doheny, President & CEO of SEE. “Together we can make a bigger impact, and we are proud to join other companies to invest in this Fund and help advance recycling efforts and improve the circular economy for packaging, especially flexible plastics.”

The Closed Loop Circular Plastics Fund, managed by Closed Loop Partners, will invest in three strategic areas to increase the amount of recycled polyethylene (PE) and polypropylene (PP) available to meet the growing demand for high-quality, recycled content in products and packaging:

  • Access – Increasing the collection of targeted (PE) and (PP) plastics by advancing current and next-generation material collection systems, including transportation, logistics and recycling sortation technologies and infrastructure.
  • Optimization – Upgrading recycling systems to more efficiently aggregate, classify and sort the targeted plastics to increase the total amount of high-quality plastics, including food-grade and medical-grade plastics, sent for remanufacturing.
  • Manufacturing – Investing in facilities and equipment that manufacture finished products, packaging or related goods using recycled content, including recycled PE and PP.

 

Since its founding in 2014, Closed Loop Partners’ existing portfolio of more than 50 investments has diverted more than 4,600 million pounds of material from landfills and back into manufacturing supply chains. Building on this, the Closed Loop Circular Plastics Fund will deploy a flexible mix of debt and equity financing, and will also aim to stimulate mainstream co-investments, including those from financial institutions, into circular solutions for plastics to further accelerate impact at scale.

 

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. Learn more about the Fund’s investment criteria and apply for funding here.

The Fund’s goal of optimizing recovery infrastructure is one part of Closed Loop Partners’ broader initiative of Advancing Circular Systems for Plastics. This initiative prioritizes scaling reuse and refill models and reducing material usage in design, while bolstering the recovery infrastructure to address plastics waste.

 

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity, project-based finance and an innovation center focused on building the circular economy. The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities, bridging gaps and fostering synergies to scale the circular economy.

 

About Sealed Air

Sealed Air (NYSE: SEE) is in business to protect, to solve critical packaging challenges, and to make our world better than we found it. Our packaging technology, solutions, and systems create a safer, more resilient and less wasteful global food supply chain, enable e-commerce, and protect goods transported worldwide.

Our globally recognized brands include CRYOVAC® brand food packaging, SEALED AIR® brand protective packaging, AUTOBAG® brand automated systems, BUBBLE WRAP® brand packaging, and SEE Automation solutions.

SEE’s Operating Model, along with industry-leading experts in materials, engineering, technology, and science are driving our innovative solution systems to be more sustainable, automated, and digitally connected.

SEE is leading the packaging industry to create a more environmentally, socially, and economically sustainable future and has pledged to design or advance 100% of its packaging materials to be recyclable or reusable by 2025, and a bolder goal to reach net-zero carbon emissions in its global operations by 2040.The company is also committed to a diverse workforce and inclusive culture through its 2025 Diversity, Equity and Inclusion pledge.

SEE generated $4.9 billion in sales in 2020 and has approximately 16,500 employees who serve customers in 117 countries/territories. To learn more, visit sealedair.com.

 

SK Global Chemical Invests $10 Million with Closed Loop Partners to Scale Best-in-Class Plastics Recycling Solutions & Catalyze the Shift Toward a Circular Economy

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July 27, 2021

With a rapidly evolving plastics industry and increasingly urgent climate challenges, SK Global Chemical joins leaders Dow, LyondellBasell & NOVA Chemicals, among others, in paving differentiated and globally sustainable ways forward for the industry

July 27, 2021, New York – Today, SK Global Chemical (SKGC) announced their investment in two of Closed Loop Partners’ funds––the Closed Loop Circular Plastics Fund and the Closed Loop Leadership Fund––to advance circular business models, scalable recycling technologies, and materials recovery infrastructure in the U.S. and Canada. Their investment will help increase the supply of high-quality recycled content to meet growing demand, return valuable materials to manufacturing supply chains and ultimately reduce extraction of virgin resources. SKGC and Closed Loop Partners’ collaboration is a critical step in demonstrating what the future of a fully circular plastics system could look like and sending a market signal to others to spur recycling markets that must mature more quickly.

“Plastics manufacturers play a key role in building circular systems for plastics––they are at the early stages of the supply chain, helping determine the quality, sustainability and recyclability of the plastics that flow through the entire system. It’s critical that these stakeholders adapt to the changing times and expectations; antiquated business models that rely on virgin plastics are no longer viable when confronted with limited natural resources and mounting plastic waste,” says Ron Gonen, Founder & CEO of Closed Loop Partners. “SK Global Chemical’s investment in our funds helps catalyze circular plastics supply chains in the U.S. and Canada, while also providing for the exchange of best practices with Asia, accelerating a circular economy at a much larger scale.”

SKGC’s investment with Closed Loop Partners builds on their ‘Zero Plastic Waste’ goals and efforts to bolster innovations across the plastics recycling system. Under their “Green For Better Life” strategy, SKGC continues to grow plastics recycling capacity globally. The company aims to recycle 900 thousand tons of plastic waste per year by 2025, lower their use of plastics, and make all of its products eco-friendly, by 2027. SKGC has formed strategic partnerships with cutting-edge advanced plastics recycling companies in North America, invested on-the-ground in new facilities that transform plastic waste into virgin-like plastics, and continues to optimize mechanical recycling infrastructure to reduce overall virgin plastic consumption. One of the reasons SKGC chose to collaborate with Closed Loop Partners is to expand its connections to a roster of leading companies working toward the circular economy, comprising both multinationals with extensive scale and emerging innovators introducing differentiated sustainable solutions.  Their investment with Closed Loop Partners aligns with ambitions of their parent company, SK Innovation, to transition from  “carbon to green” by investing more than $20 billion in five years.

SKGC’s investment in Closed Loop Partners’ Circular Plastics Fund, launched in May with Founding Investors Dow, LyondellBasell and NOVA Chemicals, brings the Fund closer to its goal of deploying $100 million to advance the recovery of plastics in the U.S. and Canada. The Fund’s catalytic strategy fills investment gaps to spur recycling markets, attracting additional corporate investors and financial institutions and accelerating capital inflows beyond the Fund’s own commitments. The Fund will invest in three strategic areas to increase the amount of high-quality recycled plastic available:

  • Access – Increasing the collection of targeted polyethylene (PE) and polypropylene (PP) plastics by advancing current and next-generation material collection systems, including transportation, logistics and recycling sortation technologies and infrastructure.
  • Optimization – Upgrading recycling systems to more efficiently aggregate, classify and sort the targeted plastics to increase the total amount of high-quality plastic, including food-grade and medical-grade plastic, sent for remanufacturing.
  • Manufacturing – Investing in facilities and equipment that manufacture finished products, packaging or related goods using recycled content, including recycled PE and PP.

The Closed Loop Leadership Fund, Closed Loop Partners’ private equity arm, is a complementary market rate strategy that proves the growth and profitability of circular economy business models. The Fund acquires and scales best-in-class companies along the value chain to build circular supply chains in the U.S.––focused on extending the useful life of materials, including plastics and packaging, organics, electronics and apparel. The Fund’s value creation strategy focuses on driving resilient profitability for businesses that optimize supply chains, keep materials out of landfill and advance the circular economy.

Since its founding in 2014, Closed Loop Partners has made more than 50 investments, diverting more than 4,600 million pounds of material from landfills and back into manufacturing supply chains. The New York-based investment firm and innovation center accelerates the circular economy through a suite of solutions––including investments and research in design innovation that reduces material use and resource extraction, reuse systems that extend the useful life of valuable materials, and mechanical recycling infrastructure and advanced recycling technologies that together help recover plastics. Building on its proven track record, and extensive ecosystem of entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities in North America, Closed Loop Partners is well positioned to form key partnerships and drive strategic investments to advance SKGC’s goals.

Na Kyung-soo, CEO of SK Global Chemical says, “We aim to build systems that keep plastics in circulation, meeting the needs of people around the world, without compromising the natural environment. Our investment with Closed Loop Partners not only helps us advance these goals, but opens doors to new strategic partnerships with leading companies that share the same vision of advancing circular systems for plastics. As a plastics manufacturer, we recognize our responsibility in transforming plastics supply chains to collect and reuse existing materials, and know that collaborating across industries is essential to system-wide impact. We look forward to working with Closed Loop Partners and their network to drive toward our shared goals.”

In accordance with SKGC’s strategic imperatives, by 2025 SKGC will  invest  500 million USD to build a cutting edge advanced plastics recycling plant in Korea.

 

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprising venture capital, growth equity, private equity, project-based finance and an innovation center focused on building the circular economy. The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities, bridging gaps and fostering synergies to scale the circular economy. Learn more about Closed Loop Partners 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. Learn more about the Fund’s investment criteria and apply for funding here.

About the Closed Loop Leadership Fund at Closed Loop Partners

The Closed Loop Leadership Fund is Closed Loop Partners’ market rate private equity fund, focused on acquiring and scaling best-in-class circular business models that are fundamental to keeping plastics and packaging, food and organics, electronics and textiles out of landfills and within a circular system. Learn more about the Closed Loop Leadership Fund here.

About SK Global Chemical

In 1972, SK global chemical laid the foundation for the development of the petrochemical industry by operating the first naphtha-cracking facility in Korea. They provide various automotive & packaging products and solutions required by customers and markets, and are growing into a technology-based global chemical company through continuous R&D efforts and global expansion.

SK global chemical will achieve its vision, ‘Green for Better Life’, by establishing a plastics-based circular economy, collaborating with various partners and stakeholders. They will expand their portfolio of eco-friendly products and will continuously recycle beyond the amount of plastics that they produce, in order to realize and leverage the sustainability efforts that will benefit our planet. Learn more about SKGC here.

Closed Loop Partners Launches Multi-Million Dollar Circular Plastics Fund with Dow, LyondellBasell, & NOVA Chemicals to Accelerate Investment in Plastics Recycling Infrastructure

By

May 26, 2021

This partnership represents an initial investment and an invitation to stakeholders across the plastics recycling value chain to join forces with this catalytic capital strategy

New York, May 26 – Today, three leading plastics and material science companies––Dow, LyondellBasell and NOVA Chemicals––announced the establishment of the Closed Loop Circular Plastics Fund  to invest in scalable recycling technologies, equipment upgrades and infrastructure solutions. The Fund, managed by Closed Loop Partners, and with an initial $25 million investment, invites businesses across the plastics value chain to join in advancing the recovery and recycling of plastics in the U.S. and Canada. The goal of the catalytic fund is to grow to deploy $100 million, through a combination of the Fund’s founding investors, additional corporate investors and financial institutions, in order to attract additional capital beyond the Fund’s own commitments. At scale, the Fund’s investments aim to recycle over 500 million pounds of plastic over the Fund’s lifespan.

The Closed Loop Circular Plastics Fund will invest in three strategic areas to increase the amount of recycled plastic available to meet the growing demand for high-quality, recycled content in products and packaging:

  • Access – Increasing the collection of targeted polyethylene (PE) and polypropylene (PP) plastics by advancing current and next-generation material collection systems, including transportation, logistics and recycling sortation technologies and infrastructure.
  • Optimization – Upgrading recycling systems to more efficiently aggregate, classify and sort the targeted plastics to increase the total amount of high-quality plastic, including food-grade and medical-grade plastic, sent for remanufacturing.
  • Manufacturing – Investing in facilities and equipment that manufacture finished products, packaging or related goods using recycled content, including recycled PE and PP.

 

Since its founding in 2014, Closed Loop Partners’ existing portfolio of more than 50 investments has diverted more than 4,600 million pounds of material from landfills and back into manufacturing supply chains.” Building on this, the Closed Loop Circular Plastics Fund will invest in technologies, companies and infrastructure projects that enhance the recovery and recycling of target materials including post-consumer and post-industrial PE and PP in the U.S. & Canada.

The Fund will deploy a flexible mix of debt and equity financing, and will also aim to stimulate mainstream co-investments, including those from financial institutions, into circular solutions for plastics to further accelerate impact at scale. With established facilities, extensive supply chain networks and markets, Dow, LyondellBasell and NOVA Chemicals are collectively well-positioned to help advance the transition to a new, more circular system. Together, they create a precedent for a sustainable future for the plastics industry, building a runway for further investments and synergies with other stakeholders in the plastics recovery and reuse value chain.

“The plastic resin manufacturers that create value for their shareholders now and in the future will be the ones that ensure that 100% of their products are safely recycled or reused, and never discarded in a landfill or elsewhere in our ecosystem. We look forward to investing in sustainable infrastructure and innovations that enable and encourage other companies, including investors in the Closed Loop Circular Plastics Fund, to deploy significantly more of their own capital to further scale these critical solutions,” says Ron Gonen, Founder & CEO of Closed Loop Partners. “Alongside championing scalable reusable packaging models and innovative new materials, growing recycling and circular economy infrastructure in the U.S. and Canada plays a critical role in eliminating plastic waste and reducing the need for the costly extraction of raw materials.”

The current supply of recycled plastics meets only 6% of demand for the most commonly used plastics in the U.S. and Canada. Systemic bottlenecks, misaligned incentives and policies, technological inefficiencies and outdated equipment across the plastics recovery system contribute to millions of tons of plastic going to waste in landfills and oceans. Increasing the recovery and recirculation of plastics could help meet an addressable market for plastics with potential revenue opportunities of $120 billion in the U.S. and Canada alone. Within this, significant opportunity exists to bolster the recovery of PE and PP, based on these materials’ market desirability and expected production amounts, as well as their wide variety of applications across industries, including healthcare and food and beverage.

“Dow is investing with Closed Loop Partners as another way to catalyze additional investment in recycling technology and infrastructure in the U.S. & Canada. Plastic materials are essential to a sustainable, low carbon economy and this fund, alongside other investments and collaborations we are engaged in, will help move society toward a circular economy, ensuring plastic is not lost to the environment,” says Jim Fitterling, Chairman and CEO of Dow. “But our commitment and capital alone are not enough to end plastic waste. We urge others, across all sectors of society, to join us and scale the technologies, partnerships and capital needed to build the circular plastics supply chains of the future.”

“Addressing the challenge of plastic waste in the environment requires collective action on multiple fronts. As a company, we have been executing a multi-pronged strategy that includes innovations in mechanical recycling, the advancement of molecular recycling technologies and the incorporation of renewable feedstocks into our manufacturing,” says Bob Patel, CEO of LyondellBasell. “In addition to our company’s efforts, further enhancements to recycling infrastructure are critical to capturing the value of used plastics and advancing the circular economy.  We believe successful joint investment can transform the challenges of plastic waste into sustainable business opportunities.”

“NOVA Chemicals is eager to join forces with industry leaders who share our same commitment to building a circular economy for plastics,” says Luis Sierra, President and CEO of NOVA Chemicals. “Innovation is key to our collective success. If we can create plastic products that are easier to recycle, perform with less materials, incorporate more recycled content and invest in the recycling and recovery infrastructure, we will achieve a zero plastic waste future. We are ready to work across the value chain, developing new solutions that will shape a better tomorrow.”

 

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. Learn more about the Fund’s investment criteria and apply for funding here.

The Fund’s goal of optimizing recovery infrastructure is one part of Closed Loop Partners’ broader initiative of Advancing Circular Systems for Plastics. This initiative prioritizes scaling reuse and refill models and reducing material usage in design, while bolstering the recovery infrastructure to address plastics waste.

About Closed Loop Partners

Closed Loop Partners is a New York-based investment firm comprised of venture capital, growth equity, private equity, project-based finance and an innovation center focused on building the circular economy. The firm has built an ecosystem that connects entrepreneurs, industry experts, global consumer goods companies, retailers, financial institutions and municipalities, bridging gaps and fostering synergies to scale the circular economy.

About Dow

Dow (NYSE: DOW) combines global breadth, asset integration and scale, focused innovation and leading business positions to achieve profitable growth. The Company’s ambition is to become the most innovative, customer centric, inclusive and sustainable materials science company, with a purpose to deliver a sustainable future for the world through our materials science expertise and collaboration with our partners. Dow’s portfolio of plastics, industrial intermediates, coatings and silicones businesses delivers a broad range of differentiated science-based products and solutions for its customers in high-growth market segments, such as packaging, infrastructure, mobility and consumer care. Dow operates 106 manufacturing sites in 31 countries and employs approximately 35,700 people. Dow delivered sales of approximately $39 billion in 2020. References to Dow or the Company mean Dow Inc. and its subsidiaries. For more information, please visit www.dow.com or follow @DowNewsroom on Twitter.

About LyondellBasell

LyondellBasell (NYSE: LYB) is one of the largest plastics, chemicals and refining companies in the world. Driven by its employees around the globe, LyondellBasell produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road, and ensuring the safe and effective functionality in electronics and appliances. LyondellBasell sells products into more than 100 countries and is the world’s largest producer of polypropylene compounds and the largest licensor of polyolefin technologies.  In 2021, LyondellBasell was named to FORTUNE Magazine’s list of the “World’s Most Admired Companies” for the fourth consecutive year.  More information about LyondellBasell can be found at  www.lyondellbasell.com.

About NOVA Chemicals Corporation

NOVA Chemicals develops and manufactures chemicals and plastic resins that make everyday life safer, healthier and easier. Our employees work to ensure health, safety, security and environmental stewardship through our commitment to sustainability and Responsible Care®. NOVA Chemicals, headquartered in Calgary, Alberta, Canada, is wholly owned, ultimately by Mubadala Investment Company of the Emirate of Abu Dhabi, United Arab Emirates.