economy

INOV Enhances PET Product Absorption From Bottled Drinking Water Industry

INOV, the leading PET waste recycling company in Indonesia, is ready to absorb additional PET waste products from the Bottled Drinking Water industry following the issuance of regulation number 6 of 2024 regarding Processed Food Labels by the Food and Drug Administration. The regulation requires Bottled Drinking Water industry players to include a warning that "under certain conditions, polycarbonate packaging can release BPA into bottled drinking water" on the packaging if using polycarbonate gallon bottles.

Bisphenol A (BPA) is classified as a hormone-disrupting chemical. "There is a possibility that this regulation will drive Bottled Drinking Water producers to use PET bottles as a substitute for polycarbonate bottles," explained INOV Director, Victor Choi. "If this happens, there will be an increase in PET waste. INOV has the capacity to absorb waste from these new PET bottles by utilizing INOV's supply chain spread across cities in Indonesia."

As the largest plastic bottle waste recycling company currently, INOV operates five plastic bottle washing facilities in Solo, Mojokerto, Medan, Makassar, and Subang. These washing locations are chosen so that all collected PET plastic bottle waste raw materials from various regions can be processed in an integrated manner. INOV is committed to building a value chain for plastic waste in cities in Indonesia.

The PET waste processing network is also organized in such a way that it is more cost and logistically efficient. Last year in 2023, the company opened its fifth washing facility in Subang, West Java with a capacity of 12,000 MT/year. This addition brings the total capacity of Inocycle's washing facilities to over 40,000 MT per year.

In the previous quarter, INOV's total sales reached Rp151.6 billion in Q1 - 2024, with Recycled Polyester Staple Fiber (Re-PSF) products contributing 76% to the total sales.

Tag: Bottled Drinking Water Industry INOV PET Bottles