The company, which listed its shares on the Indonesia Stock Exchange (IDX) in July, plans to build a new plant in Lampung as re-PSF is becoming increasingly competitive against virgin PSF, according to Inocycle president Jaehyuk Choi.
hile the public outcry against plastic waste continuing to grow, publicly listed company PT Inocycle Technology Group (INOV) has moved to turn trash into treasure, by recycling plastic waste into polyester staple fiber (re-PSF), a basic material used in construction, the automotive industry, household appliances, clothing and civil engineering.
The company, which listed its shares on the Indonesia Stock Exchange (IDX) in July, plans to build a new plant in Lampung as re-PSF is becoming increasingly competitive against virgin PSF, according to Inocycle president Jaehyuk Choi.
He said many foreign and domestic companies were realizing their commitment to environmental preservation by using re-PSF, adding that in Indonesia “our customers include Toyota, Daihatsu, Suzuki, Mitsubishi and Nissan car companies, which use re-PSF as material for carpets, dash panels, back seat silencers, etc.”
“We are geared up to expand our plastic waste washing and recycling plants to meet the increasing demand for re-PSF within the country and the international market,” Choi told The Jakarta Post.
As the first company in Indonesia to recycle plastic waste, mostly plastic bottles, into re-PSF, Inocycle now operates three production plants in Tangerang, Banten; Surakarta, Central Java; and Mojokerto, East Java, with a combined annual capacity of 33,000 tons and washing facilities in Surakarta, Mojokerto and Medan, North Sumatra, Choi said.
“The demand for re-PSF in Indonesia is estimated to reach 931,000 tons this year and is forecast to increase annually by 7 percent, while global consumption is estimated to reach 17.8 million tons. Hence, there are big opportunities in the export market,” Choi said.
Inocycle, which started operations as a domestic investment company in 2010, booked Rp 237 billion (US$17 million) in net sales in the second quarter, up from Rp 185 billion in the same period last year, as the company increased its share of the domestic market to 25 percent. (vin)
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