NIGERIA: IFC releases $ 39 million for Engee Manufacturing recycling plant in Ogun
Engee Manufacturing is now ready to green its plastic packaging in Nigeria. The manufacturer of polyethylene terephthalate (PET) resin used in the packaging of soft drinks, bottled water, and other household and pharmaceutical products has just received financial support from the International Finance Corporation (IFC). The loan amounts to $ 39 million. In a press release published on September 1st, 2020, the financial institution said its support is provided as part of a financing plan that includes a “A” an IFC loan and a $ 15 million subordinated loan from the Private Sector Blend Facility, granted by the International Development Association.
The funding 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% of its raw material from local plastic waste, helping Nigeria to strengthen the recycling and plastic bottle 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. It will be a great victory for the Nigerian economy and its environment ”, said Alexander Gendis, Managing Director of Engee Manufacturing.
Recycling of 30,000 tonnes of used plastic bottles per year
The new Engee Manufacturing plant is estimated to double the number of plastic bottles recycled in Nigeria by redeploying up to 30,000 tonnes of used plastic bottles per year. Even so far, the challenge for the recycling industry remains enormous in Nigeria. According to official figures, Nigeria generates some 32 million tonnes of waste per year, including 2.5 million tonnes of plastic waste. The country’s disposal, recycling and waste management system is highly inefficient, especially for plastic and non-plastic waste, most of which (70%) ends up in landfills, sewers, beaches and landfills. ‘water.
Arriving in Nigeria in 2014 as a Greenfield joint venture, Engee PET Manufacturing Company Nigeria Limited (E-PET) now employs around 500 people.