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By Chukwuma Umeorah
Nigerian Breweries Plc has entered into a strategic partnership that will lead to the establishment of a food-grade recycled polyethylene terephthalate (rPET) production facility in Ogun State, as part of efforts to support sustainable packaging and expand Nigeria’s recycling industry.
The company disclosed in a notice to the Nigerian Exchange Limited (NGX) that its participation in the project will be limited to a minority investment of 29 per cent equity, adding that it will not be involved in the control or management of the proposed facility.
The company said the project will be executed through Indorama Ventures Recycling Solutions Limited, a special purpose vehicle established to develop, own and operate the recycling plant.
The partnership also involves global collaborators, including Indorama Ventures Public Company Limited, which will serve as the major partner, and Genesis Energy Group as a minority partner.
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According to the statement signed by its company’s secretary, Uaboi Agbebaku, “NB’s participation in the partnership will be limited to that of a minority investor with 29 per cent equity interest. NB will play no role in the control or management of the business.”
It added that the collaboration aligns with the company’s sustainability ambitions and is intended to support the development and growth of the local recycling industry.
The company further stated that the investment will help secure a reliable future supply of recycled PET materials for its operations, taking into cognisance the roadmap on mandatory rPET usage under the National Policy on Plastic Waste Management.
Indorama Ventures was described as a global sustainable chemical company and the world’s leading recycler of PET used in beverage packaging, while Genesis Energy Group is expected to contribute sustainable infrastructure and energy expertise to the project.
The brewer however, noted that the proposed transaction remains subject to applicable regulatory approvals, technical validation and operational implementation.
