United States-headquartered Novolex, a leader in packaging choice, innovation and sustainability, has announced that it is investing $10 million to expand capacity to recycle plastic bags and other polyethylene film at its recycling facility in North Vernon, Indiana. This plant is one of two world-class film recycling facilities operated by the company.

The investment in mechanical recycling equipment will enable the plant to produce up to 28 million pounds of recycled content per year to produce new products made with post-consumer or post-industrial recycled content.

"Our added recycling capacity in Indiana reflects the Novolex commitment to support the circular economy," said Stan Bikulege, Novolex chairman and CEO. "The technology will reduce waste and provide much-needed recycled content that we will be able to use in our products. The expansion will create jobs for the community and enable us to develop innovative packaging solutions for our customers — a win for everyone."

The expanded operations will begin to come online in the fourth quarter this year and reach full capacity by the end of 2023 as new equipment is installed in phases. When fully operational, the project is expected to provide 14 additional jobs for the community, the company said in a press release.

The state-of-the-art equipment chosen for the expansion will be able to identify and sort a wide range of incoming materials such as plastic bags, pallet wrap, agricultural film and more, providing important flexibility in the range of potential incoming feedstocks. At full capacity, the plant will utilise up to 40 million pounds of polyethylene waste that will be diverted from landfills each year.