IFC releases $39m for Engee manufacturing recycling plant in Ogun

Engee PET Manufacturing Company Nigeria Limited; a plastic bottle manufacturer has been granted $39million loan by the International Finance Corporation (IFC) to build a new plant.

The conglomerate are manufacturers of polyethylene terephthalate (PET) resin used in the packaging of soft drinks, bottled water and other household and pharmaceutical products.

With the raw material as plastic waste targeted at recycling tons of used plastic bottles per year, it will tremendously contribute to the promotion of recycling activities the country.

Nigeria produces an average of 2.5 million tons of plastic waste per year. With this development, the company is now ready to green its plastic packaging in the country. Set up in 2014 as a Greenfield joint venture, Engee PET Manufacturing Company Nigeria Limited (E-PET) employs about 500 people.

Engee said in a statement that, the financial institution stated that its support is being provided under a financing plan that includes a $24 million senior “A” loan from the IFC and a $15 million subordinated loan from the Private Sector Blend Facility, provided by the International Development Association.

IFC’S financing is for the construction of a continuous polymerization PET resin plant in Ogun State, southwestern Nigeria. The facility, which is expected to be fully operational within 2 years, will derive more than 20 percent of its raw material from local plastic waste, helping the country to strengthen the plastic bottle recycling and manufacturing sectors.

“The plant’s collection, cleaning and treatment processes are sufficient to accelerate the evolution of plastics recycling in the country and support jobs along the recycling value chain. This will be a great victory for the Nigerian economy and its environment,” said Alexander Gendis, managing director, Engee Manufacturing.

According to estimates, Engee Manufacturing’s new plant is expected to double the number of recycled plastic bottles in Nigeria by redeploying up to 30,000 tons of used plastic bottles per year.

Even so far, the challenge for the recycling sector remains huge in Nigeria. According to official figures, Nigeria generates some 32 million tons of waste per year, of which 2.5 million tons are plastic waste.

The country’s disposal, recycling and waste management system is very inefficient, especially for plastic and non-plastic waste, most of which (70 percent) ends up in landfills, sewers, beaches and water bodies.