PureCycle, Mitsui, RM TOHCELLO Target BOPP Film with Recycled PP

PureCycle Technologies (PCT) has struck a three-way partnership with RM TOHCELLO Co., Ltd., a major producer of biaxially oriented polypropylene (BOPP) film, and trading house Mitsui & Co. The goal is to bring recycled polypropylene into flexible packaging, an application that has historically resisted recycled content due to purity requirements.

The deal targets BOPP film, which is used extensively in food packaging, labels, and consumer goods. Mechanically recycled polypropylene has struggled to meet the optical clarity and consistency those applications demand. PureCycle's solvent-based dissolution technology strips color, odor, and other impurities from post-consumer polypropylene waste, producing a resin the company says can clear that bar.

RM TOHCELLO started testing samples of PureCycle's PureFive resin in the first quarter of 2023. Those early trials led to pilot-scale production runs that have since been completed, the companies said Tuesday. The partners are now preparing to introduce the material to converters and brand owners in Japan, with a formal commercial agreement targeted for 2027. Shipments would follow compliance with Japanese import regulations.

"Flexible films are one of the fastest growing segments in packaging and we've been waiting for a solution like PureCycle's to allow us to start using recycled content in BOPP film and PP sealant film," said Masaru Furukawa, RM TOHCELLO Executive Officer and Head of Business Sector, in a statement.

PureCycle's technology is licensed from Procter & Gamble (PG). The company's first commercial-scale recycling facility in Ironton, Ohio, has faced repeated delays and cost overruns, though it has begun producing resin. PureCycle has also announced plans for facilities in Thailand, Belgium, and Augusta, Georgia.

The partnership is the latest push by PureCycle to secure offtake agreements and demonstrate its technology in high-value end markets. The company's stock has been volatile as it works through construction and financing challenges.

PureCycle's Alpha Score sits at 54 out of 100, a Mixed rating, reflecting the gap between its technology promise and its execution track record.

RM TOHCELLO is one of the world's largest BOPP film producers. Mitsui, which already collaborates with PureCycle, provides the trading and investment infrastructure to move the resin into Japanese markets.

"This partnership represents exactly the kind of step-change we envisioned when PureCycle's technology was developed," said Wiebe Schipper, PureCycle's Vice President of European and Asia Pacific Operations. "We're unlocking an entire segment of applications where recycled content had been locked out."

The companies did not disclose financial terms or volume targets for the planned commercial agreement.