The investment will fund the company’s global expansion to meet growing demand.
UBQ Materials, a thermoplastic developer based in Tel Aviv, Israel, has announced a $170 million funding round led by TPG Rise, TPG's global impact investing platform based in San Francisco. The company’s investment was made through TPG Rise Climate, its climate investing fund, and The Rise Funds, its multisector impact investing fund.
According to a news release from UBQ, the investment will fund the company’s global expansion to meet growing demand. This includes building a large-scale facility in the Netherlands to be operational by the end of 2022. Funds from the round will also go into UBQ's continued research to advance certifications, research and development of new products.
TPG says the financing round also included participation from existing investors, Battery Ventures, and others such as M&G's Catalyst strategy, a U..K-based investor. Additional terms of the transaction were not disclosed.
UBQ’s conversion process uses the entire unsorted household and municipal waste stream. The waste runs through multiple stages of automatic refinement, removing small particles of metals and minerals, which are sent to the correct recycling facilities. The material is then cleared as feedstock for a reactor, which causes a chemical reaction in the waste, breaking down the organic elements to their basic particulate components. This includes lignin, sugar, cellulose and various fibers. These components are reconstituted with melted plastics to create UBQ.
The process is compatible with materials like polypropylene, polyethylene and polystyrene. UBQ says its product can be used on its own and in conjunction with conventional oil-based resins to offset the overall carbon footprint of end products in industries including construction, automotive, logistics, retail and 3D printing.
"In addition to converting municipal waste into functional thermal plastics, UBQ's material solution is energy efficient, uses no water and produces no effluents," says Steve Ellis, co-managing partner of The Rise Funds. "UBQ can be utilized in a broad array of industrial and consumer applications. We're excited to be partnering with management to scale the business globally."
UBQ says more than 2 billion tons of municipal solid waste are produced every year globally, more than 70 percent of which end up in landfills or openly dumped. Landfills are the third-largest human source of methane, a greenhouse gas 80 times more powerful than carbon dioxide over 20 years.
"Waste is not the end, it is only the beginning," says Jack Bigio, co-founder and co-CEO of UBQ Materials. "This financing round enables us to widen the reach of our patented conversion technology and novel material, bringing us closer to a functioning circular economy worldwide."
HDPE and PP scrap prices have softened in the fourth quarter after reaching record highs earlier this year.
In the last year, recovered polyolefin plastic prices made considerable gains, with high-density polyethylene (HDPE) and polypropylene (PP) reaching previously unseen levels. However, as the year drew to a close, those prices had softened.
“Bale prices for both natural and mixed-color HDPE have seen very significant and rapid declines in a short period of time during October and November,” says Roberto Fontanillas, vice president and general manager of Envision Plastics, which has locations in Reidsville, North Carolina, and Chino, California, though he is based in the Atlanta area.
Some sources Recycling Today spoke with in late summer of 2021 said they felt a plateau or correction would be imminent for polyolefin scrap grades, with one reprocessor noting that pricing already was moving sideways in August.
During the fourth quarter, as virgin capacity disruptions that affected HDPE and PP were corrected and more prime material was available, pricing for recycled material took a hit.
Fontanillas also says HDPE scrap availability appears to be more plentiful than it was earlier in 2021.
Demand for postconsumer resin (PCR) remains generally healthy, however. Fontanillas says demand for Envision’s natural HDPE, its color-specific Prisma line and its food-contact EcoPrime is strong. “We are seeing some seasonal end-of-year demand softness, but we expect demand to revert to the long-term growth trend line in the new year,” he said in mid-December.
PCR pricing also remains higher than its virgin equivalents, he says. “We have seen historic spreads between the two this year, and we see the potential for the two to decouple as society and markets increasingly value recycled plastic as a more sustainable material.”
While he says challenges always are present as are reasons for excitement, Fontanillas adds, “On balance, we are super excited about the future for recycled plastics and look forward to continuing our work to be a leader in differentiated recycled polyolefins plastics to help brand owners and converters grow their businesses by helping them achieve their sustainability goals.”
In the polyethylene terephthalate (PET) sector, a reprocessor based in the Northeast who deals exclusively with deposit material says 2021 was “one heck of a year” in terms of pricing and demand. “There is big demand for high-grade clear flake from fast-moving consumer goods companies and the consumer packaged goods companies,” he adds.
The reprocessor says export demand also is growing, with buyers offering strong prices.
While he says the first quarter of the year is generally the worst for pricing, he is not anticipating the associated decline in demand, therefore, “Pricing will maintain where it is,” he adds.
The new branch in Jacksonville expands Kobelco's territory.
Company Wrench, headquartered in Carroll, Ohio, has announced the opening of its Jacksonville, Florida, branch, which offers new and used equipment for sale and rent in the general construction, demolition, scrap and recycling markets.
This branch is equipped with full parts and service departments, capable of assisting customers with multiple product lines, the company says. It also allows Company Wrench to expand its Kobelco dealership to northeast Florida and southeast Georgia. Kobelco named Company Wrench the official dealer for central Florida in 2020.
“Our Lakeland branch has proudly served Florida for over 10 years," says Cam Gabbard, Company Wrench president. "Opening the Jacksonville location provides a tremendous opportunity to serve new customers in another thriving market. This is also a significant development in Company Wrench’s partnership with Kobelco. The expansion of Company Wrench’s territory means even more customers will enjoy the benefits of the outstanding Kobelco product.”
Company Wrench’s newest branch is located at Phillips Highway in Jacksonville. Customers can contact Larry Hunt for service, Clay Bentley for parts and Brian Baum for sales and rentals.
The company is constructing a paper mill and box factory in Henderson, Kentucky.
Atlanta-based Pratt Industries has broken ground on its $500 million paper mill and box factory in Henderson, Kentucky.
According to a news release from Kentucky Gov. Andy Beshear’s office, Pratt broke ground on the first of two facilities that will total 1.15 million square feet along Kentucky Highway 425 in Henderson County.
“As work continues to help our western Kentucky communities heal after last week’s unprecedented storm, the arrival of Pratt Industries to this region will be an important part of that recovery process,” Beshear says. “Not only is this new operation going to create quality job opportunities for hundreds of Kentucky residents, the generosity shown by Pratt leadership during this difficult time also proves the company will be a perfect fit for Henderson and the surrounding area. I want to thank Anthony Pratt and his team for their commitment to the commonwealth.”
In an earlier announcement made in July, the company reported that it plans to begin construction on the paper mill in March 2022, with completion slated for the fall of 2023.
The project investment has increased from $400 million to $500 million to support the construction of a 500,000-square-foot box factory that will produce corrugated sheet and boxes, including pizza boxes and packaging for distributors and big box stores with paper sourced from the 650,000-square-foot paper mill that will produce 100-percent-recycled paper. Pratt says it plans to complete construction of the box factory by 2023.
“It’s an honor to join Gov. Beshear and the community of Henderson as we break ground on our $500 million green manufacturing investment,” says Anthony Pratt, executive chairman of Pratt Industries. “Our Henderson paper mill and box factory is the single biggest investment our company has ever made and will create 1,000 jobs, including American, green-collar manufacturing and construction jobs. Our thoughts and prayers are with the people of western Kentucky at this difficult time and in support of those communities, I’m honored to pledge $1 million to assist with tornado relief and recovery efforts in Kentucky."
He continues, “I commend Gov. Beshear for his leadership during this disaster and commit to supporting Kentucky as it recovers from this tragic tornado outbreak. Gov. Beshear’s leadership has made Kentucky a great place to invest in and we see further investment potential in this dynamic state. I believe in regional manufacturing. It’s the heart and soul of America, and there is no better place than Kentucky.”
According to the report from Gov. Beshear’s website, the Kentucky Economic Development Finance Authority (KEDFA) also approved an incentive agreement with Pratt under the Kentucky Business Investment program. The performance-based agreement can provide tax incentives based on Pratt’s investment and annual job and wage targets. KEDFA also approved Pratt for tax incentives through the Kentucky Enterprise Initiative Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. By meeting its annual targets over the agreement term, Pratt can be eligible to keep a portion of the new tax revenue it generates, and the company may claim eligible incentives against its income tax liability and wage assessments.
To date, Pratt operates paper mills in Georgia, Indiana, Louisiana, New York and Ohio.
Automaker Mahindra to add recycling capacity, while government minister endorses secondary steel production methods.
Scrap metal recycling in India is ending the year with several news items that point to the industry’s positive momentum in that nation.
Mahindra MSTC Recycling Pvt. Ltd., part of India-based conglomerate and vehicle producer Mahindra Group, has announced the signing of a memorandum of understanding (MOU) with government agencies of the state of Maharashtra “to set up additional world-class vehicle scrapping centers” in that Indian state.
The proposed end-of-life vehicle (ELV) recycling centers will be able to recycle passenger cars, commercial vehicles and smaller two- and three-wheeled vehicles “in accordance with all the legal and environmental norms” issued by the pertinent government agencies and ministries.
Mahindra MSTC Recycling, which also is known as Cero, says it already has a recycling facility in Pune, India, and is looking to set up four additional facilities in the cities of Mumbai, Nagpur, Aurangabad and Nashik. The company says its ELV recycling centers are designed to provide “a hassle-free option for customers to scrap their vehicles.”
“Cero aims to create a network of world-class facilities across Maharashtra and India,” says Sumit Issar, managing director of Mahindra Accelo. “From a sustainability point of view, through recycling of old vehicles, we aim to reduce India’s dependence on steel scrap imports and conservation of natural resources, which go into the production of steel.”
Also on the scrap consumption side, Davis Index has reported that India’s Ministry of Steel leader Ram Chandra Prasad Singh delivered remarks in mid-December in support of that country’s scrap-fed electric arc furnace (EAF) and induction furnace steel producers.
The minister reportedly told a steel industry gathering in the state of Punjab “all support will be extended” by the national government to steel industry stakeholders as the nation focuses on building its infrastructure and its manufacturing sector.
In the nonferrous sector, Nupur Recyclers Ltd., an importer and processor of mixed nonferrous metals, is preparing to issue a stock IPO, according to a news release issued by the company earlier this month.
India’s efforts to boost its secondary metals production come at a time when some of its neighbors in Asia are scrutinizing scrap imports and secondary production, despite the energy and resource efficiency seemingly inherent in the practice.