Recycled PET (rPET) Manufacturing Facility - Bangladesh's Circular Economy Initiative
A sustainability-focused investment consortium approached IMARC Engineering to establish South Asia's most advanced recycled PET (rPET) facility in Bangladesh. With global brands committing to 25-50% recycled content in packaging and Bangladesh's garment industry requiring sustainable polyester fiber, the client identified a strategic opportunity in the circular economy. The project involved setting up a 50,000 MT per annum facility processing post-consumer PET bottles into food-grade rPET flakes and pellets using advanced decontamination technology.
The client faced multifaceted challenges: establishing reliable post-consumer PET collection networks in an informal waste sector, achieving food-contact compliance (EFSA, FDA) for rPET requiring super-clean processing, managing high contamination levels in feedstock, and positioning Bangladesh as a quality rPET supplier competing against established Indian and Chinese producers. Additionally, fluctuating PET bottle availability and quality required flexible processing capabilities.
What We Did
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Pre-Investment and Strategic Advisory:
IMARC conducted comprehensive market analysis covering Bangladesh's annual PET bottle waste generation (estimated 180,000 MT), collection infrastructure, competitive landscape, and export potential to brands in Europe and North America with recycled content mandates. Our feasibility study evaluated the informal waste picker network, aggregator economics, and strategies to formalize collection through partnerships with 47 identified waste management enterprises across Dhaka, Chittagong, Narayanganj and Sylhet divisions. Location analysis assessed advantages including proximity to Ports for export logistics, access to industrial water from Karnaphuli River, established industrial infrastructure in CEPZ and KEPZ zones, and government incentives under Bangladesh's green industry initiatives. CapEx estimates of BDT 420 Crore covered advanced sorting systems, washing lines, decontamination reactors, and quality laboratories. We projected 28% IRR based on rPET pricing premiums of 15-20% over virgin PET.
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Engineering & Design Services:
We designed a technologically advanced facility featuring automated PET bottle sorting systems with NIR (near-infrared) optical sorters separating PET from PVC, HDPE, and colored contaminants at 99.2% purity. The process flow incorporated pre-washing, label removal, grinding to 8-12mm flakes, hot caustic washing (85°C with 1.5% NaOH), multi-stage rinsing, SSP (solid-state polycondensation) reactors for decontamination achieving FDA no-objection letters, and twin-screw extrusion for pelletizing. Plant layout optimized the 15-acre site with receiving and sorting halls (4,500 sq.m.), washing and processing lines, SSP reactor buildings with nitrogen generation systems, extrusion halls, quality control laboratories, and warehousing segregating food-grade and technical-grade rPET. Utilities planning included 3.2 MW power (with 1.5 MW rooftop solar reducing grid dependence), 120 m³/hour process water with closed-loop recycling achieving 85% recovery, 5 TPH steam for hot washing, and effluent treatment systems handling high-COD wastewater (8,500 mg/L) from label adhesives and organic contamination.
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Procurement & Supply Chain Support
We conducted global technology evaluation, ultimately selecting European near-infrared sorting systems known for 99%+ accuracy, Austrian SSP reactor technology achieving IV (intrinsic viscosity) enhancement from 0.72 to 0.80 dL/g necessary for food contact, and German extrusion lines ensuring consistent pellet quality. Our team negotiated favorable payment terms including 20% advance, 70% against shipment, and 10% post-commissioning. Critical to project success, we developed comprehensive supply chain strategies for feedstock procurement. This included creating legal frameworks for partnerships with 120 waste aggregators, establishing collection centers in 8 cities with training programs for 2,400 waste pickers on PET identification and segregation, implementing mobile-based procurement systems with transparent pricing (BDT 28-35/kg based on quality), and setting up logistics networks with 34 dedicated collection vehicles.
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Project Execution & Site Management:
IMARC's turnkey project management covered 18 months coordinating civil construction, specialized equipment installation, and phased commissioning. We managed construction of reinforced concrete flooring supporting heavy washing equipment loads, overhead cranes for material handling, three-stage effluent treatment plant with biological treatment, and 12 MVA substation with power factor correction. Our team supervised installation and commissioning of complex SSP reactors requiring precise vacuum systems (0.5 mbar), nitrogen atmosphere controls (99.99% purity), and temperature management (210-220°C). We established SCADA systems monitoring 87 process parameters in real-time including moisture content, IV values, contamination levels, and energy consumption.
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Operations Readiness & Compliance:
We developed 41 SOPs covering bottle reception and quality grading, sorting protocols, washing cycle optimization, SSP operation parameters, quality control procedures, and food safety management systems. Our team conducted pilot runs processing 15 MT of diverse feedstock validating washing efficiency (residual contamination <50 ppm), decontamination efficacy, and achieving target IV specifications. We established comprehensive quality control protocols including batch testing for IV, moisture, color values (Lab*), metal contamination (ICP-MS), and migration testing for food contact compliance. Operator training programs covered polymer science fundamentals, contamination recognition, equipment operation, and safety procedures for high-temperature processing.
Final Results
The facility achieved commissioning in 17 months, one month ahead of schedule, processing 50,000 MT annually of post-consumer PET bottles. The plant produces 38,000 MT of food-grade rPET pellets and 10,000 MT of technical-grade flakes, with 2,000 MT waste to co-processing. Production quality consistently achieves IV of 0.80±0.02 dL/g, colour values L*>78, and passes FDA and EFSA migration testing requirements.
Final CapEx of BDT 405 Crore delivered 3.6% savings through strategic equipment sourcing and efficient execution. The facility secured EFSA Novel Food Contact approval within 14 months and established supply agreements with major beverage brands (Coca-Cola, PepsiCo procurement networks) and polyester fiber manufacturers, ensuring 88% capacity utilization with premium pricing 18% above virgin PET.
The project's social impact includes formalizing income for 2,400 waste pickers with 32% income increase through fair pricing and consistent off-take, creating 340 direct jobs, and establishing Bangladesh's first food-grade rPET production. Environmental benefits include diverting 50,000 MT of PET waste from landfills and ocean pathways, reducing CO2 emissions by 87,000 MT annually versus virgin PET production, and advancing Bangladesh's circular economy credentials.
The rooftop solar installation generates 2.1 million kWh annually, reducing grid dependence by 18% and saving BDT 1.8 Crore in energy costs. Our closed-loop water recycling saves 24 million liters annually, critical in water-stressed region.
Case Study Details
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Industry
Plastic Recycling / Circular Economy
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Location
Bangladesh
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Project Scale
50,000 MT per annum capacity, BDT 420 Crore investment
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Challenge
Informal waste sector integration; achieving food-grade quality from contaminated feedstock; EFSA/FDA compliance; establishing Bangladesh as quality rPET supplier
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Impact
50,000 MT PET waste diverted; 38,000 MT food-grade rPET; EFSA approved; 2,400 waste pickers formalized; 87,000 MT CO2 savings annually
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IMARC's Solution Highlights
Advanced NIR sorting and SSP technology; formalized collection network across 8 cities; EFSA Novel Food Contact approval; 85% water recycling; operational in 17 months
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