Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    NJ’s PCR delay risks making its own excuse permanently true

    NJ’s PCR delay risks making its own excuse permanently true

    E-scrap magnet recycling company scales up

    Why only some rare-earth sources are economically viable

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Sept. 21

    Who should pay for lithium-ion battery fire damage?

    America’s critical-materials buildout has a feedstock problem

    Certification scorecard – week of Sept. 14

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    NJ’s PCR delay risks making its own excuse permanently true

    NJ’s PCR delay risks making its own excuse permanently true

    E-scrap magnet recycling company scales up

    Why only some rare-earth sources are economically viable

    e-Stewards to develop an ITAD-specific standard

    Certification scorecard — week of Sept. 21

    Who should pay for lithium-ion battery fire damage?

    America’s critical-materials buildout has a feedstock problem

    Certification scorecard – week of Sept. 14

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Plastics

Advanced RPET plant on the way near LA

byJared Paben
October 25, 2017
in Plastics
Construction is underway on the rPlanet Earth facility in Vernon, Calif.
Construction is underway on a massive Los Angeles-area plastics recycling facility that will take PET bales all the way to bottle preforms, extruded sheet and thermoform packaging.

The 302,000-square-foot facility in Vernon, Calif. is being built for a new company, rPlanet Earth. Taking in baled post-consumer PET, including material from curbside collections, the plant will sort, wash, decontaminate and convert it into food and drink packaging. It will melt flakes for molding and extruding, skipping a pelletizing step.

The company’s products will be made from RPET flakes and, at customers’ requests, may contain virgin PET, but rPlanet Earth won’t sell flakes or pellets.

“When we were looking to put this together, we thought that that business model made the most sense and would make the company sustainable from an operations and profitability standpoint, where some other folks struggle that only produce a flake or a pellet,” said Bob Daviduk, co-CEO of rPlanet Earth. “We don’t believe that the flake or pellet business is a good one to be in over the long run.”

Joe Ross, co-CEO, noted that when you sell a pellet it could be used to make carpet or any number of industrial products, but major retailers want to have true closed-loop systems.

Large-scale facility

The first phase, which will be capable of taking in bales and manufacturing finished products, is scheduled to come on-line in the second quarter of 2018, Daviduk said. It will be capable of producing about 80 million pounds of finished product per year.

The building is being designed to accommodate a second phase capable of generating at least the same volume. The structure will also provide a new headquarters for rPlanet Earth.

Construction contractor Xebec Building Co., one of the companies working on the project, noted the site’s proximity to the L.A. and Long Beach ports and multiple freeways.

Daviduk said rPlanet Earth has already invested substantial sums of money. Last year, it invested about $35 million. By the end of this year, it expects to spend another $55 million, and next year it anticipates spending another $10 million to $15 million, he said, for a total expected investment of more than $100 million.

“It’s a huge investment. It’s a huge commitment to increasing the supply of recycled content out in the marketplace – and high-high-quality recycled content,” Daviduk said. “Obviously good enough that we believe we’ll meet any brand owners’ specifications.”

A rendering of the completed rPlanet Earth facility.

Ross noted rPlanet Earth will use Krones’ bottle-grade flake production technologies, which have achieved scientific approval with Coca-Cola. Ross has prior experience in the packaging world, including with companies producing recycled-content PET products.

Advanced technologies

The technology rPlanet Earth is implementing has a green light from the U.S. Food and Drug Administration to produce food- and beverage-contact products.

The front-end sorting system will be provided by Eugene, Ore.-based Bulk Handling Systems. In addition to processing PET collected through bottle redemptions, rPlanet Earth plans to run Grade B material from curbside programs through the plant. That means they need a robust sorting system up front to remove non-PET plastics, Daviduk said.

He noted that China’s ban on recovered plastic imports is “a big positive for us.”

“A lot of Grade B material was shipped to China, and now you’ve got a major buyer that’s effectively out of the market,” he said.

Germany-based packaging and bottling machine company Krones is providing the wash line and decontamination system. The flakes will be decontaminated at 200 degrees Celsius under vacuum. Equipment companies Welex, Lyle and Husky are providing the sheet, thermoform and bottle pre-form equipment, respectively.

“We really are a technology company,” Daviduk said. “We’re going to bring technology to bear to improve the way that post-consumer PET is recycled. We’ll have the lowest carbon footprint of any packaging out in the marketplace because of the way we’re putting the plant together.”

The percentage of recycled content in its products will depend on the customer’s desires, but the facility will be able to generate 100 percent RPET products, Daviduk said.

Financing support

The project has received financial support from the state and federal governments.

It received $20.5 million in low-cost debt financing through the U.S. Treasury Department’s New Market Tax Credit (NMTC) program, which is designed to spur investments in low-income communities. Additionally, the California Department of Resources Recycling and Recovery (CalRecycle) provided $2 million in low-interest loans through its Recycling Markets Development Zone program. The state has also approved sales tax breaks for the construction project.

Daviduk said the support helps secure interest rates below what the market is willing to provide, given rPlanet Earth’s lack of operating history. He has extensive experience in the finance world.

The company is also receiving additional financing, with Daviduk noting that rPlanet Earth has two “deep-pocketed institutional investors” supporting it.

Daviduk sees strong demand for rPlanet Earth’s products in the market in the future. In reading sustainability reports from major companies, he often hears them say they’d use more RPET if it were available, competitively priced and of high quality.

Ross said the rPlanet Earth team is having conversations with a number of major companies.

“They know that we’re coming and they’re very interested,” Ross said. “And we’re working not only with R&D but also with purchasing departments in all of these opportunities.”

 

To receive the latest news and analysis about plastics recycling technologies, sign up now for our free monthly Plastics Recycling Update: Technology Edition e-newsletter.

  

SoremaWeima

Tags: PETProcessorsTechnology

TweetShare
Jared Paben

Jared Paben

Related Posts

Analysis: Undersupply of PCR is ‘stifling’ brand goals

US lawmakers urge protection of domestic RPET

byAntoinette Smith
September 25, 2026

In a letter to the US Trade Representative, five representatives asked the USTR to consider trade remedies and support verification...

Cutting healthcare plastics could save $18B

Report provides path to reduce medical e-scrap

byPaul Lane
September 25, 2026

The European report found that circularity in medical devices is possible through several potential initiatives.

Recyclers reeling from NJ PCR extension

Recyclers reeling from NJ PCR extension

byAntoinette Smith
September 23, 2026

The recent three-year extension for exemptions to the state's PCR mandates elicited frustration and confusion among recyclers.

Textile EPR and the definition of recycling

Textile Exchange reports progress in production

byPaul Lane
September 22, 2026

The organization said the industry has made some sustainability progress, but there’s much room for improvement.

ALPLA’s holistic approach to packaging design

ALPLA’s holistic approach to packaging design

byAntoinette Smith
September 18, 2026

The packaging and recycling company's North American design lead explains why recyclability goals can't exist in isolation.

Study assesses environmental cost of excess data storage

BAN paper says AI e-scrap estimates are low

byPaul Lane
September 17, 2026

The advocacy group said current estimates on the scrap resulting from data centers don’t account for the full picture of...

Load More
Next Post

Film recovery needs investment without duplication of efforts

2026 Buyers’ Guide

Equipment, services and technology suppliers serving the recycling industry.

Browse the Guide

More Posts

Oregon state capitol building with state flag and blue sky.

NAW appeals Oregon EPR ruling

September 25, 2026
Analysis: Undersupply of PCR is ‘stifling’ brand goals

US lawmakers urge protection of domestic RPET

September 25, 2026
Bin to Better gets students involved in reuse, recycling

Bin to Better gets students involved in reuse, recycling

September 24, 2026
Recyclers reeling from NJ PCR extension

Recyclers reeling from NJ PCR extension

September 23, 2026
Bipartisan reps introduce bill on recycling claims

House passes bill to ease lithium-ion battery storage rules

September 24, 2026
Calif. Governor Gavin Newsom at podium.

Newsom signs battery EPR expansion, vetoes SB 54 fund bill

September 24, 2026
Jeff Fielkow and the startup that’s building the US packaging EPR system

Jeff Fielkow and the startup that’s building the US packaging EPR system

September 10, 2026
New Jersey pushes back PCR mandate to 2030

New Jersey pushes back PCR mandate to 2030

September 10, 2026
Bale pricing mostly flat for September

Bale pricing mostly flat for September

September 9, 2026
Cutting healthcare plastics could save $18B

Report provides path to reduce medical e-scrap

September 25, 2026
Load More

About & Publications

About Us

Staff

Archive

Magazines

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletters

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Policy Now
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazines
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.