Public Service officially put its 300,000 square foot plastic recycling complex in Indianapolis into operation this week, marking the entry of the environmental service provider into the plastic recycling market, with business continuously expanding from baling stations to the field of plastic regeneration. This Midwest recycling complex includes Public Service's Polymer Center and Blue Polymer Resin Plant, the latter being a joint venture between the company and the plastic distribution enterprise Ravago.

The Indianapolis Polymer Center has started producing recycled PET bottle flakes, and the company is applying for certification with pelletizing companies and preform manufacturers, which will take 30-60 days. The Blue Polymer Plant has purification, extrusion, and pelletizing capabilities, and it will add blending and modification capabilities later, serving both food-grade and non-food-grade recycled polymer needs. At the same time, the complex is designed to operate 24/7, but it is not currently running at full capacity. In the next two months, the company will increase production, and the final expected operating rate will reach 80-90%. This is the first of four complexes planned by Republic Services, with each complex costing between $85 million and $90 million. Each complex will include a polymer center and a blue polymer resin plant. The first polymer center opened in Las Vegas in the second half of 2023, and its blue polymer plant is under construction in Buckeye, Arizona, with plans to start production in the second half of this year.

The third complex is located in the northeast and will break ground in June or July, with an opening scheduled for the second half of 2026 or the first half of 2027. The fourth complex is expected to be in the south and may be announced in the second half of this year, with its opening planned 12 months after the third complex. If demand allows, the company may add two more complexes in the future. The Las Vegas plant supplied recycled PET flakes to Coca-Cola in January 2024 and signed a long-term supply agreement with Circularix. The company claims that the center in Las Vegas has sold out, and the products from Indianapolis are also nearly sold out. Republic Services retained 20% of the recycled PET to supply potential future investors or exclusive customers, but all the polyolefins will be supplied to the Blue Polymer plant, which has also sold out.

Each complex is expected to have an annual production capacity of 175 million pounds, or 80,000 tons, of recycled plastics, with PET and polyolefins being roughly equal. Republic Services began purchasing bales of bottles 8-9 months ago, with 60% of the raw materials coming from its own collection operations, which extend from the Midwest to the Southeast. The remaining 40% comes from third-party suppliers, and Republic Services claims that this requires them to offer a quid pro quo, which could be higher prices, easier business dealings, or more stable business, etc. (Source: Plastics Recycling Update)