US – Post-consumer resin (PCR) producer Circulus has secured a Letter of Non-Objection (LNO) from the US Food and Drug Administration (FDA) to produce post-consumer resins at its facility in Riverbank, California.
The LNO certifies that the facility’s recycling process can produce fully recycled post-consumer resin (PCR) that is suitable for direct food-contact packaging applications.
These applications include direct contact for room temperature, refrigerated and frozen goods.
Circulus founder and chief strategy officer David Hudson said: “From its inception, Circulus has been committed to the goal of producing resin for consumer-facing products and packaging.
“This development provides important and independent validation that we have achieved our goal, allowing us to move forward in this important market for recycled materials.”
The PCR maker is one of the portfolio companies of Ara Partners, a private equity firm that focuses on decarbonization investments in the industrial, manufacturing, chemicals, materials, energy efficiency, green fuels, food and agriculture sectors.
Circulus CEO Craig Foster said: “This is a huge step forward for Circulus, the circular economy, and for the sustainable packaging industry.
“Our customers want mechanically recycled resin suitable for the broadest use of applications and Circulus now can meet this demand.”
Headquartered in Houston, Texas, Circulus produces PCR from recycled low-density polyethylene (LDPE) with the aim of contributing to the circular economy.
The company specializes in converting plastic waste into PCR by using advanced mechanical recycling solutions.
Circulus’ Riverbank plant began operations in November 2021 and can produce more than 40 million pounds of PCR a year.
The company’s PCR production is estimated to save the equivalent of 30 million gallons of gasoline, reducing carbon emissions by almost 88% more than the production of virgin resin.
The material is designed to be used in plastic bags, shrink film, pouches, overwraps and other consumer-facing applications.
In October last year, the company secured a US$300 million loan from Apollo to support the company’s ongoing development of recycling infrastructure.
The transaction underscored Apollo’s commitment to driving a more sustainable future and a long track record of investing in or lending to companies supporting the energy transition.
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