We are thrilled to announce a groundbreaking project in Latvia—a new PET recycling plant in Olaine, representing a joint investment of over €35 million. This state-of-the-art facility is set to become Europe's largest and most advanced PET recycling facility, positioning Latvia at the forefront of sustainable waste management and recycling in the region.
Spanning an impressive outdoor area of approximately 40,000 m2, with a total interior space covering 30,000 square meters, including production facilities, office space, and shared facilities, this plant will also rank as one of the largest industrial buildings in Latvia. Its innovative design and cutting-edge technology will enable us to set new standards in PET recycling while significantly increasing our food-grade rPET pellets production capacity.
The investment is led by PET Baltija, one of the largest PET recyclers in northern Europe and a proud member of Eco Baltia, the leading waste management and recycling group in the Baltics. Contributing over €10 million to the project, PET Baltija has established itself as a prominent player in the recycling industry with a wide range of high-quality PET flakes and granules, including food-grade products, of which nearly 100% is exported.
Salvis LapiĹš, Chairman of the Board at PET Baltija, expresses his excitement, stating, "The new factory will ultimately allow us to more than triple our food-grade rPET pellets production capability while also improving efficiency, productivity, and setting new standards in PET recycling technologies."
In line with our growth strategy, PET Baltija's existing factory in Jelgava will be gradually relocated to the new production facility in Olaine by the end of the first quarter of 2024. This move aligns with Eco Baltia's rapid development strategy in the Baltics and beyond, as we strive to strengthen our market share within the European market.
To ensure the success of this ambitious project, Eco Baltia has partnered with PICHE, a leading industrial park developer in Latvia, and secured the backing of the INVL Baltic Sea Growth Fund. The construction of the new plant is currently underway, with the initial phase celebrating the installation of the first production equipment in early May.
We are proud to collaborate with Austria-based Starlinger, a renowned supplier of recycling equipment, who will provide us with cutting-edge technology. Only two other European plants and a total of ten globally currently utilize Starlinger equipment of this level of sophistication. Technologically advanced, our new PET Baltija factory will be one of the most advanced PET recycling facilities in Europe and the world.
DeimantÄ KorsakaitÄ, Executive Partner at INVL Baltic Sea Growth Fund and Chair of the Supervisory Board at PET Baltija, emphasizes the significance of this project: "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 the world's sustainability drive."
At PET Baltija, we are committed to sustainability and promoting a circular economy. Accordingly, the new factory will comply with the BREEM sustainable construction standard and be fully powered by renewable energy. We will also implement advanced wastewater treatment equipment to minimize chemical substance consumption. Additionally, our top-level air recuperation system will reuse excess heat energy generated during the PET melting process for heating the building.
Furthermore, we prioritize the well-being and safety of our employees, providing the highest work safety standards, ergonomic workspaces, and shared recreational areas.
We are excited about this monumental project that will revolutionize PET recycling in Europe and drive us closer to our sustainability goals. Stay tuned for further updates as we progress with the construction of our new PET recycling plant in Olaine, Latvia.
