IFC announces financing package for Nigeria’s plastics packaging and recycling industries

IFC Nigeria 8 SeptIFC has announced a financing package to help the Nigerian manufacturer Engee Manufacturing Limited to build a Continuous Polymerisation PET Resin plant in Ogun state 

The plant is expected to source more than 20% of its raw materials from local, waste plastics, strengthening Nigeria’s recycling and manufacturing sectors.  

Engee’s new Polyethylene Terephthalate (PET) plant could double the number of plastic bottles recycled in Nigeria through a process of collecting, cleaning and processing up to 30,000 tonnes of used plastic bottles every year. The new plant is expected to be fully operational within the next 24 months.

Alexander Gendis, managing director, Engee Manufacturing Limited, said, “IFC’s financing for the first continuous polymerization plant in Nigeria will support our efforts to grow the country’s packaging for drinking water, beverages and pharmaceutical industries.”

“The plant and process are enough to fast-track the evolution of plastics recycling in the country and support jobs along the recycling value chain. This will be a big win for Nigeria’s economy and its environment.”

The financing package includes a US$24mn senior ‘A’ loan from IFC and a US$15mn subordinated loan from the International Development Association’s Private Sector Window Blended Finance Facility.

Eme Essien Lore, IFC country manager for Nigeria, commented, “The new factory will make positive contributions to Nigeria’s manufacturing sector and job growth, while potentially revolutionising the recycling industry in the country.”

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