PET Baltija, one of the largest PolyEthylene Terephthalate (“PET”) recyclers in Northern Europe and part of Eco Baltia, the largest waste management and recycling group in the Baltics, today announces the investment of over €10 million as part of the development of a new PET recycling plant in Olaine, Latvia.
This joint project is being delivered by Eco Baltia, which is backed by the INVL Baltic Sea Growth Fund, in collaboration with PICHE, a leading industrial park developer in Latvia. The total investment exceeds €35 million.
The plant will be one of the largest and most modern PET recycling factories in Europe and one of the largest industrial buildings in Latvia. Its total indoor area, including production facilities, well-equipped office space and various shared facilities, will reach a total of ~30,000 square meters. The outdoor area will also cover ~40,000 square meters. As part of the project, PET Baltija’s existing Latvian factory in Jelgava will be relocated to the new production facility in Olaine over time.
Māris Simanovičs, Chairman of the Board at Eco Baltia, commented:
“In recent years, we have pursued a rapid development strategy for the Eco Baltia group in the Baltics and beyond. In addition to its organic growth, we have also acquired several companies to ensure the production of the best possible final product in PET recycling as well as expanding our offering for environmental management.”
“This development of a new PET Baltija factory is one of the most ambitious business expansion projects by Eco Baltia in recent years. The main objective is to increase the food grade rPET pellets production capacity and provide the necessary conditions for the company's further development, as well as to strengthen our market share within the European market. This will undoubtedly create additional value for our customers and partners respectively, as well as provide better working conditions for our employees.”
With the factory currently under construction, the plant’s initial phase was celebrated in early May. This marked the installation of the first production equipment located within one of the completed production areas.
Salvis Lapiņš, Chairman of the Board at PET Baltija, added:
“This year, the company celebrated its 20th anniversary, having demonstrated that Latvian companies can be significant players in the recycling industry on the European stage. More recently, we are progressing the development of a new factory that will ultimately allow us to more than triple our food grade rPET pellets production capability while also improving efficiency, productivity and set new standards in PET recycling technologies.”
The supplier of the recycling equipment is Starlinger, an Austrian manufacturer and one of the world’s leading developers and manufacturers of recycling technologies. In Europe, only two production plants currently have Starlinger equipment of this level already installed, while globally there are only ten examples. Therefore, the PET Baltija factory will also technologically be one of the most modern PET recycling factories in Europe and in the world more broadly.
Deimantė Korsakaitė, Executive Partner at INVL Baltic Sea Growth Fund and Chairman of the Supervisory Board at PET Baltija, commented:
“As part of our strategy, we aim for significant expansion and development of our portfolio companies to become bigger, more efficient and better developed in all aspects, including a better workplace for employees. This step is significant and will move an already international company to its next stage of development. It will progress PET Baltija further forward on the map, as not only a regional but also a European level, for the most modern and efficient recyclers contributing to world’s sustainability drive.”
The new PET Baltija’s recycling factory and industrial park is developed by the leading industrial building developer in Latvia, PICHE.
According to PICHE CEO Pēteris Senkāns, the PET recycling plant is one of the company’s largest and most complex projects of the year.
“Like other industrial parks developed by PICHE, this project also adheres to the highest of energy efficiency standards. We are pleased that our extensive experience and competence were chosen for the implementation of this project, allowing the construction of a modern industrial building that meets the current requirements for the construction industry.”
Following the sustainability strategies of Eco Baltia and PET Baltija, which aim to reduce resource consumption and promote a circular economy, the building will comply with the BREEM® sustainable construction standard and will be fully powered by renewable energy.
The factory will also have unique wastewater treatment equipment which will also significantly reduce the consumption of chemical substances in the wastewater treatment process. In addition, the factory will have a highest of standards air recuperation system which will reuse excess heat energy generated during the PET melting for heating of the building. In accordance with the ESG strategy, significant attention is being paid to employee well-being and working conditions, in order to provide the highest of work safety standards, ergonomic and comfortable workspaces, as well as shared and recreational spaces.
PET Baltija’s relocation is planned in several stages, gradually shifting all PET Baltija production from Jelgava to the new factory in Olaine by the end of Q1’2024. The total number of jobs at the new factory will then exceed 250.