Recycler PreZero enters processing market with Roplast Industries acquisition
Canadian PlasticsPackaging Recycling
California-based Roplast makes polyethylene film and bags, and has the capacity to processes 30 million pounds per year.
Mixed-plastics recycling company PreZero US has entered the processing arena by acquiring bag manufacturer Roplast Industries.
The financial terms of the deal have not been disclosed.
Founded in 1989 and headquartered in Oroville, Calif., Roplast makes polyethylene film and bags, and has the capacity to processes 30 million pounds per year. The film and bags are sold across the U.S. in a variety of markets.
“PreZero has the means to supply resins that can serve as the PCR feedstock for the Roplast production line,” Los Angeles-based PreZero said in a March 1 news release. “These efforts point to the primary business goal of PreZero US, which is vertically integrating to deliver closed loop solutions that support the circular economy. By bringing sourcing raw material, pre-production, processing, and finally manufacturing under one roof, the company is continuing its work to develop the domestic infrastructure for recycling.”
The Roplast acquisition is the next step in what PreZero calls an “ambitious growth strategy”. In 2020, the firm announced investments totaling over US$100 million in plastics recycling facilities on both coasts – in Jurupa Valley, Calif., and Westminster, S.C. The facilities are processing film and mixed rigid plastic bales into LDPE, polypropylene, and HDPE resins. Total planned processing capacity is estimated over 160 million pounds per year.
PreZero entered the U.S. market in 2018 and is an arm of PreZero International, which operates in the European recycling and disposal market.