Businesses and research institutions unite on flexible film circularity in America’s Upper Midwest

12 May 2022 --- Leading global businesses and research institutions in America’s Upper Midwest are uniting to catalyze a regional circular economy for flexible films and packaging materials. The new initiative – led by Minnesota’s MBOLD coalition – will expand film recycling infrastructure and the supply of recycled resin for use in new products, reducing greenhouse gas emissions and curtailing waste.

The coalition is supported by members General Mills, Schwan’s Company, Target, Ecolab, Cargill, Land O’Lakes and the University of Minnesota, who are collaborating across the value chain with film recycler Myplas USA and film manufacturer Charter Next Generation.

With investment from MBOLD members and other stakeholders, Myplas USA will establish a state-of-the-art flexible film recycling plant in Minnesota – its first in the US. Slated to begin operations in spring 2023, this new 170,000 square-foot mechanical recycling plant aims to recycle nearly 90 million pounds of low- and high-density polyethylene packaging and film annually at full capacity.

“We are building a regional ecosystem to support circular approaches for flexible film,” says JoAnne Berkenkamp, managing director of MBOLD, an initiative of Greater MSP. “By working together, we are catalyzing a new circular economy that will expand access to film recycling in the Upper Midwest, increase the supply of recycled resin for use in new film products and cut emissions.”The Association of Plastic Recyclers says recycled PE resins can reduce total energy by 65% against virgin material.

Circular investments
The US uses 12-15 billion pounds of flexible packaging and films annually, including select food packaging, shopping bags, shrink wrap, pallet wrap, e-commerce mailers, lawn and garden bags, and hay bale wrap, among many other products. However, only an estimated 5% of flexible films used in the US are recycled each year, with the rest being landfilled, incinerated or even released into the environment.

The initiative includes a combined US$9.2 million equity investment in Myplas USA by lead investors General Mills, Schwan’s Company and Wisconsin-based film manufacturer Charter Next Generation, and supporting investors Target and Ecolab. Myplas’ new film recycling plant will be located in Rogers, Minnesota, northwest of Minneapolis, and will employ about 300 people.

Dimitrios Smyrnios, Schwan’s Company’s CEO, comments: “Reducing the environmental impact of our packaging is a core commitment for Schwan’s. That’s why we’re part of this joint equity investment in new recycling infrastructure. By returning the flexible film to new uses, we can reduce waste and curtail dependence on virgin plastic. It’s good for the environment and our business.”

Lifecycle benefits
According to The Association of Plastic Recyclers, the use of recycled PE resins offers significant lifecycle benefits, including a 65% reduction in total energy used, a 59% reduction in water consumption and a 71% reduction in global warming potential, compared with virgin plastics.

“Myplas has a deep passion for plastics recycling, and we’re proud to establish our first US plant and our US headquarters in Minnesota,” says Andrew Pieterse, Myplas USA’s CEO. “Our partners’ commitment, investment and innovative thinking, paired with Myplas’ technical expertise, will be transformative for the entire region. We can’t wait to get started.”The US reportedly uses 12-15 billion pounds of flexible packaging and films annually.

Building demand for recycled PE resin is also key to a thriving circular economy. To that end, Charter Next Generation will purchase recycled resin from Myplas for use in a variety of food, industrial and healthcare film products.

MBOLD members Cargill, General Mills, Schwan’s Company, Land O’Lakes and the University of Minnesota will evaluate potential product applications using recycled resin with Charter Next Generation. Land O’Lakes, Cargill, Schwan’s Company and the University of Minnesota will explore opportunities to direct film waste to Myplas USA for recycling once the plant is operational.

Partner support
The Alliance to End Plastic Waste and Closed Loop Partners are each providing multi-million dollar debt financing to Myplas USA to support the development of their new Minnesota recycling facility. The Minnesota Department of Employment and Economic Development is also supporting Myplas USA through US$1 million from the Minnesota Investment Fund and US$450,000 from the Minnesota Job Creation Fund.

“This is about protecting our environment and driving innovation,” said the State’s employment and economic development commissioner Steve Grove. “It’s about bringing a new industry to Minnesota and showing the world how the private and public sectors can come together to solve problems.”

In related news, New York State recently introduced two new bills to combat over-packaging, poor recycling rates and litter issues, including an Extended Producer Responsibility program requiring companies such as McDonald’s and Amazon to pay for the cost of packaging disposal and recycling.

Edited by Joshua Poole

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