Australia’s Amcor (Hawthorn; www.amcor.com) said it has signed an agreement to purchase mechanically recycled polyethene to produce flexible packaging films from Canadian resin maker Nova Chemicals (Calgary, Alberta; www.novachemicals.com). 

The converter said using the material “is an important element of Amcor’s commitment to support packaging circularity”.

Few details about the memorandum of understanding were released. Amcor said the agreement would allow it to buy Syndigo brand rPE resin from Nova manufactured at the Canadian company’s first mechanical recycling facility, which it intends to set up in the US town of Connersville, Indiana. 

Related: Nova, Plastic Energy to research viability of Canadian pyrolysis plant 

Nova announced its plans in July for the US recycling facility, which is to process post-consumer plastic film, with output quoted at over than 45,000 t by 2026. The company said the plant is a “significant expansion” of its Circular Solutions business announced early this year. 

Nova noted that the facility is to be operated by local packaging company Novolex (Hartsville, South Carolina; https://novolex.com). Compatriot investment firm Apollo Global Management (New York, New York; www.apollo.com) said it acquired a majority stake in Novolex in April 2022. 

Nova Chemicals is wholly owned by Mubadala Investment Company (Abu Dhabi; www.mubadala.com).