Chinese company invests in Kenya's recycling

A Chinese company, Weeco Recycling Co, has injected $45 million of new capital into the plastic waste recycling sub-sector in Kenya to boost collection and recycling of plastic bottles in the East African country.

The company, previously known as Hui Commercial EPZ, made the announcement on Monday in its plant at the Export Processing Zone, Athi River, about 30 kilometers from downtown Nairobi.

The recycling company converts post-consumer PET (polyethylene terephthalate) packaging into pellets, which are exported to the parent company, Weeco Technology Ltd, in Zhangjiagang, Jiangsu province, north of Shanghai, for the manufacture of polyester clothing fiber.

It also plans to expand to Mombasa city. "We plan to inject $6 million in a new plant in Mombasa where we will buy 10 advanced machines. With this new equipment, we will be able to dispose of 3,000 tons of plastic bottles and products per month. We also plan to expand investments in our overseas operations," said the Wang Zhangyin, director of the company.

The company signed a partnership contract with the Kenya PET Recycling Company (PETCO), a voluntary and independent not-for-profit organization established to regulate the management of post-consumer PET packaging in the country.

"We have entered into the Kenyan market to provide a lasting solution to the challenge posed by post-consumer PET bottles. In addition, we will provide employment opportunities, revenue for the exchequer and improve the standards of living for the collectors who will be supplying to us," added Wang.

John Waithaka, PETCO Kenya chairman, said that the company would play a key role in recycling of post-consumer PET packaging in the country. This will be in line with its strategic objective, which targets the recycling of 5,900 tons or 247 million bottles by 2019.

"PETCO will provide a price subsidy of 50 cents per kilogram of PET bottles collected and recycled by Weeco Limited, over and above the current purchasing price," he said.

The move aims at subsiding the production costs of the Chinese company while improving the purchasing price paid to plastic bottle collectors when buying the raw materials, said PETCO Kenya.