India's Magpet set to start operations at Kharagpur R-PET plant by November

Indian petrochemicals company Magpet is set to launch operations at its 20,000 metric tons per year recycled polyethylene terephthalate flake plant in Kharagpur in November, the company said in a statement.

Magpet, part of Magnum Group, is a PET preform and container manufacturer headquartered in Kolkata. The new facility will mark Magpet's first foray into recycling.

The second phase of the new plant, which should be operational by June 2025, is expected to result in food-grade R-PET pellet capacity of 45,000 t/y, the company added.

"It will be India's integrated bottle to bottle food grade recycling plant with the latest European technology which includes the Herbold Washing Line, Coperion Twin Screw Extruder and SSP from Polymerion being bought to India for the first time. With this backward integration, Magpet will become India's 1st PET Circular Enterprise ," Magpet President and CEO Indroneel Goho said.

He added that the plant will deliver PET recyclate that is approved by the European Food Safety Administration and the US Food and Drug Administration for direct contact with food. It will also seek Food Safety and Standards Authority of India approval once operational, he said.

According to market estimates, the Indian market has seen development of a large amount of new R-PET capacity since 2021. According to industry sources, by the end of 2024, approximately 240,000 t/y of R-PET pellet capacity is expected to be operational, which is expected to more than double by 2025.

While India is expected to mandate minimum content levels for R-PET by March 2025, market players said that current demand in the country for R-PET comes from voluntary commitments from brand owners, while a large portion of recycled flake and pellet output continues to be exported to the Middle East, Europe and the US, where feedstock concerns keep recyclate supply volume lower than demand.

Platts, part of S&P Global Commodity Insights, assessed the FOB India marker for food grade R-PET flake at $945/t and the FOB India marker for food grade R-PET pellet at $1,285/t on Sept. 16.