Extension of the plastic recycling site -Tangier Automotive City
Investor
Sumilon Eco Pet
Location
Tangier, Morocco
Investment
Acquisition of a new recycling unit for PET plastic bottles
Investment Size
€ 20,110,000
Financial results
Payback period: 4 years
CO2 savings
53,646 tCO2 per year
Impact
Improve competitiveness, penetrate new markets by avoiding the use of more PET plastic Reduce carbon footprint.
Donor
EU-GCF
Expansion of a factory and acquisition of a new PET plastic bottle recycling unit.
Sumilon Eco Pet is a subsidiary of the Indian group Sumilon Industries, inaugurated in 2013 at Tanger Automotive City (TAC). The company specializes in the production of food-grade polyethylene terephthalate (PET) resin made from used plastics, particularly plastic bottles from mineral water and sodas.
Sumilon Eco Pet processes PET bottles in bales, as well as hot and cold washed PET bottle flakes, as raw material for the production of eco-friendly and durable PET resin. The product is approved by the U.S. Food and Drug Administration (FDA) and the European Union. It is valued for its optimal packaging of food and beverages due to its lightness, strength, and cost-effectiveness.
As part of its operations, the company processes 13,287 tons of plastic waste annually, including flakes and bottles. More than 60% of this waste comes from the local market (plastics collected in Morocco). Sumilon Eco Pet produces 12,565 tons of PET resin annually, intended for the manufacture of new PET plastic products. A portion of this production is exported to Europe, the United Kingdom, and the United States.
As part of its business development, Sumilon Eco Pet aims to increase its production capacity. This ambition has been realized through the expansion of its factory and the acquisition of a new PET plastic bottle recycling unit. This new line involves recycling waste (mainly bottles), melting and pressurizing the PET, which is then filtered into uniform, dry pellets with flow characteristics similar to virgin resin. This line helps eliminate contaminants such as charred materials and wood or metal fragments.
This investment, funded by a loan/lease from Bank of Africa, has a positive economic and environmental impact and will be repaid through energy savings. The implementation of this system is expected to reduce greenhouse gas emissions by 53,646 tons of CO2 equivalent per year and plastic waste by 19,252 tons annually. The estimated payback period for the investment is four years.
Green Economy Financing Facility (GEFF) in Morocco is a green economy financing program, implemented by the European Bank for Reconstruction and Development (EBRD), will provide financing to Moroccan private enterprises through local financial institution partners. Supported by the European Union (EU), the Green Climate Fund (GCF). It will enable local companies to invest in green technologies, reduce their costs through climate adaptation measures, energy efficiency and renewable energy technologies.